Adtalem Global Education Inc (ATGE)

Quick ratio

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020
Cash US$ in thousands 199,601 219,017 193,958 264,798 221,202 187,324 182,894 262,438 273,689 315,373 207,776 327,515 346,973 788,729 275,420 360,095 494,613 497,746 449,296 561,170
Short-term investments US$ in thousands — 11,900 12,800 12,900 13,200 14,000 13,300 12,100 12,500 12,000 18,100 17,000 17,800 20,200 21,600 20,500 20,600 10,890 10,541 9,434
Receivables US$ in thousands 146,189 162,972 146,973 171,509 126,833 140,909 133,666 147,752 102,749 113,284 99,542 111,858 81,635 96,064 92,744 163,211 67,996 77,559 91,051 99,536
Total current liabilities US$ in thousands 507,927 540,569 384,554 551,309 487,657 509,110 398,573 495,635 431,203 437,920 371,462 490,549 417,527 521,206 497,475 635,695 408,807 382,205 340,743 409,937
Quick ratio 0.68 0.73 0.92 0.81 0.74 0.67 0.83 0.85 0.90 1.01 0.88 0.93 1.07 1.74 0.78 0.86 1.43 1.53 1.62 1.63

June 30, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($199,601K + $—K + $146,189K) ÷ $507,927K
= 0.68

The quick ratio of Adtalem Global Education Inc. has exhibited noteworthy fluctuations over the analyzed period, reflecting changes in the company's short-term liquidity position.

From September 30, 2020, through December 31, 2020, the quick ratio remained relatively stable, at 1.63 and 1.62 respectively, indicating a solid liquidity buffer capable of covering current liabilities without relying on inventory. A decline is observed in the subsequent quarters, with the ratio decreasing to 1.53 by March 31, 2021, and further declining to 1.43 by June 30, 2021, suggesting a gradual erosion of liquidity cushion during this period.

A significant drop occurs by September 30, 2021, where the ratio falls sharply to 0.86, and continues to decline through December 31, 2021, reaching 0.78. This indicates a tightening of liquidity, approaching a level where immediate obligations may be more challenging to meet solely with liquid assets.

The ratio recovers notably by March 31, 2022, ascending to 1.74, surpassing initial levels observed in 2020, and then declines again to 1.07 by June 30, 2022, reflecting variability and some liquidity pressures. Throughout 2022 and into 2023, the ratio stabilizes in the approximate range of 0.88 to 1.01, frequently oscillating around the 0.9 mark, which signifies a cautious liquidity position just below the conventional threshold of 1.0, indicating that liquid assets are slightly insufficient to cover current liabilities fully at times.

In subsequent quarters, there is a gradual increase beginning in late 2023, with the ratio rising to 0.92 on December 31, 2024, and further improving to 0.73 by March 31, 2025, demonstrating a modest strengthening in short-term liquidity.

Overall, the pattern shows periods of liquidity tightening, especially from late 2021 to mid-2023, with some recovery in late 2024 and mid-2025. The fluctuations in the quick ratio suggest variability in the company's short-term liquidity management, with periods of stress and subsequent stabilization. The current figures, hovering around 0.73 to 0.92, imply that the company's liquid assets are generally close to, but often below, immediate current liabilities, highlighting a need for careful liquidity management going forward.