Strategic Education Inc (STRA)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | 14.92 | 16.98 | 22.01 | 18.67 | 18.88 |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 9.51 | 8.97 | 6.60 | 11.39 | 2.71 |
Inventory turnover data is not provided in the table for Strategic Education Inc. For receivables turnover, the company's performance has been consistent over the past five years, with a declining trend from 2021 to 2023. This ratio indicates how efficiently the company is collecting its accounts receivable. A higher ratio is generally preferred as it indicates faster collections.
In terms of payables turnover, the data shows no information for any of the years, which means that the company's payables turnover ratio is not available. The payables turnover ratio measures how efficiently a company is managing its trade credit from suppliers.
The working capital turnover for Strategic Education Inc has shown fluctuations over the past five years. A higher working capital turnover ratio suggests better efficiency in utilizing working capital to generate sales revenue.
Overall, the analysis of activity ratios for Strategic Education Inc reveals differing trends in receivables turnover and working capital turnover, with no data available for inventory turnover and payables turnover. Further analysis and comparison with industry benchmarks may provide additional insights into the company's operational efficiency and financial performance.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 24.46 | 21.50 | 16.59 | 19.55 | 19.34 |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data, let's analyze the activity ratios of Strategic Education Inc:
1. Days of Sales Outstanding (DSO):
- DSO measures the average number of days it takes for a company to collect revenue after a sale is made.
- The trend shows a decreasing DSO over the years, indicating that the company has been able to collect its accounts receivable more quickly.
- In 2023, DSO stands at 24.52 days, which is higher compared to the previous year but still indicates a relatively efficient collection process.
2. Days of Inventory on Hand (DOH):
- The data for Days of Inventory on Hand is missing for all years, so it is not possible to analyze this activity ratio for Strategic Education Inc.
- However, a lower DOH would generally indicate a faster turnover of inventory, improving liquidity and reducing carrying costs.
3. Number of Days of Payables:
- The information for Days of Payables is missing for all years, making it challenging to evaluate the efficiency of the company's payables management.
- A longer period of payables could indicate that the company is taking longer to pay its suppliers, potentially benefiting cash flow, while a shorter period could indicate prompt payment practices.
Overall, based on the available data, Strategic Education Inc seems to have improved its accounts receivable management as indicated by the decreasing trend in Days of Sales Outstanding. However, the absence of information on Days of Inventory on Hand and Days of Payables limits a comprehensive analysis of the company's overall activity ratios related to inventory and payables management.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 9.58 | 8.05 | 7.54 | 6.17 | 8.52 |
| Total asset turnover | 0.53 | 0.49 | 0.49 | 0.43 | 0.56 |
The long-term activity ratios of Strategic Education Inc, particularly the fixed asset turnover and total asset turnover, have shown varying trends over the past five years.
Fixed asset turnover has demonstrated an increasing trend from 2019 to 2023, with a notable peak in 2023 at 9.56, indicating that the company generated $9.56 in revenue for every dollar invested in fixed assets. This suggests that the company efficiently utilizes its fixed assets to generate sales.
In contrast, total asset turnover has fluctuated over the same period, with a slight drop in 2023 compared to 2022. The ratio of 0.53 in 2023 indicates that the company generated $0.53 in revenue for every dollar of total assets. Although this ratio is relatively low, it suggests that the company may have a significant amount of assets tied up in operations, which could potentially improve with more effective asset utilization strategies.
Overall, the analysis of these long-term activity ratios implies that Strategic Education Inc has been improving its efficiency in generating revenue from its fixed assets over the years, but there may be room for further optimization in utilizing its total assets more effectively to drive profitability and overall financial performance.