Strategic Education Inc (STRA)

To analyze Strategic Education Inc's number of days of payables, we need to calculate the accounts payable turnover ratio and then convert it into the number of days of payables outstanding.

The formula for the accounts payable turnover ratio is:
Accounts Payable Turnover = Total Purchases / Average Accounts Payable

To calculate the average accounts payable, we would sum the accounts payables for the current and previous year and divide by 2.

Once we have the accounts payable turnover ratio, we can convert it into the number of days of payables outstanding:
Number of Days of Payables = 365 days / Accounts Payable Turnover Ratio

By analyzing the trends in the number of days of payables over the years, we can assess the company's ability to pay its suppliers. A decreasing trend may indicate a more efficient management of payables, while an increasing trend could signal liquidity issues or strained supplier relationships.

It is essential to compare these numbers with industry benchmarks and competitors to gain a deeper understanding of Strategic Education Inc's payables management efficiency. Further qualitative analysis and consideration of the company's overall financial health and operating environment are also necessary to provide a comprehensive assessment.

Peer comparison

Dec 31, 2023