Strategic Education Inc (STRA)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 13.79 | 9.48 | 8.94 | 6.58 | 11.94 |
The activity ratios of Strategic Education Inc provide insights into the efficiency of the company's operations.
1. Inventory turnover: The data shows that inventory turnover information is not available for the years provided. This ratio typically indicates how quickly a company sells its inventory. Without this data, it is difficult to assess how effectively the company is managing its inventory levels.
2. Receivables turnover: Similar to inventory turnover, information on receivables turnover is not provided for the years specified. This ratio usually reflects how efficiently the company collects payments from its customers. Without this data, it is challenging to gauge the effectiveness of the company's credit and collection policies.
3. Payables turnover: The data indicates that information on payables turnover is not available for the given years. Payables turnover ratio signifies how quickly a company pays its suppliers. Without this data, it is challenging to assess the efficiency of the company's payment processes.
4. Working capital turnover: The working capital turnover ratio for Strategic Education Inc has shown fluctuation over the years. It was 11.94 in 2020, decreased to 6.58 in 2021, increased to 8.94 in 2022, further improved to 9.48 in 2023, and significantly rose to 13.79 in 2024. This ratio measures how well the company generates revenue relative to its working capital. The increasing trend indicates that the company is utilizing its working capital more efficiently in generating sales, especially notable in the substantial improvement seen in 2024.
In conclusion, while information on inventory turnover, receivables turnover, and payables turnover is lacking, the working capital turnover ratio for Strategic Education Inc indicates improvements in utilizing working capital effectively to generate revenue, particularly demonstrated by the significant increase in 2024.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data for Strategic Education Inc, the activity ratios such as Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables are not available for the years 2020 to 2024.
Without specific values for these activity ratios, it is challenging to analyze the efficiency of the company's inventory management, account receivables collection, and accounts payables management over the years. The absence of this data hinders the ability to assess how effectively Strategic Education Inc is managing its operating cycle and working capital.
In the absence of concrete figures for these ratios, it is recommended that the company provides more detailed financial information to facilitate a comprehensive analysis of its operational efficiency and effectiveness in managing its resources and cash flows.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 4.13 | 3.77 | 6.47 |
| Total asset turnover | 0.60 | 0.53 | 0.49 | 0.49 | 0.45 |
The fixed asset turnover ratio for Strategic Education Inc has shown variability over the past few years. In 2020, the ratio was relatively high at 6.47, indicating that the company generated $6.47 in sales for every $1 invested in fixed assets. However, this ratio decreased to 3.77 in 2021 and then increased to 4.13 in 2022, suggesting that the efficiency of utilizing fixed assets improved during those years.
On the other hand, the total asset turnover ratio, which reflects how well the company utilizes all assets to generate sales, has been relatively stable and increasing over the period. It was 0.45 in 2020, increased to 0.49 in 2021 and 2022, further improving to 0.53 in 2023, and reaching 0.60 in 2024. This trend indicates that the company has been more effective in generating sales in relation to its total assets as time has progressed.
Overall, the analysis of the long-term activity ratios suggests that Strategic Education Inc has made improvements in utilizing its assets efficiently to generate sales over the years, with a slight dip in fixed asset turnover but consistent improvement in total asset turnover.