Strategic Education Inc (STRA)
Activity ratios
Short-term
Turnover ratios
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | 161.01 | — | — | — | — | — | 331.49 | 123.14 | — | — | — | — | — | — | — | — | — |
| Receivables turnover | 14.90 | 10.49 | 11.74 | 14.85 | 16.98 | 13.12 | 14.20 | 16.89 | 21.61 | 12.58 | 13.45 | 15.90 | 19.13 | 21.09 | 24.04 | 23.83 | 18.88 | 16.25 | 15.12 | 14.68 |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 9.49 | 12.97 | 9.93 | 9.25 | 8.98 | 7.50 | 6.73 | 6.71 | 6.48 | 7.33 | 7.52 | 9.87 | 11.67 | 1.64 | 2.51 | 2.73 | 2.71 | 2.80 | 2.66 | 2.52 |
I will analyze the activity ratios of Strategic Education Inc based on the provided data.
Receivables Turnover:
- Receivables turnover measures how efficiently the company is able to collect its accounts receivable during a specific period.
- The trend for Strategic Education Inc's receivables turnover is fluctuating, with values ranging from 10.45 to 16.98 over the past eight quarters.
- A higher receivables turnover indicates a faster collection of receivables, which can suggest effective credit policies or good customer payment behavior.
- Strategic Education Inc's highest receivables turnover of 16.98 in Q1 2022 may indicate an efficient collection process, whereas the lowest value of 10.45 in Q3 2023 raises concerns about slower collection.
Payables Turnover:
- The payables turnover ratio was consistently reported as 0.00 across all quarters, indicating that the company does not have a significant amount of accounts payable or may not have reliable data for this ratio.
- A higher payables turnover would typically indicate that the company is paying its suppliers more quickly.
Working Capital Turnover:
- The working capital turnover ratio assesses how efficiently a company utilizes its working capital to generate sales revenue.
- Strategic Education Inc's working capital turnover has varied from 6.71 to 12.92 over the past eight quarters, with a general increasing trend.
- A higher working capital turnover suggests effective management of working capital to drive sales, indicating improved efficiency in the company's operations.
Overall, Strategic Education Inc's activity ratios demonstrate fluctuations in receivables turnover and an increasing trend in working capital turnover, but the stability in payables turnover raises questions about the company's payment practices or possibly incomplete data reporting.
Average number of days
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | 2.27 | — | — | — | — | — | 1.10 | 2.96 | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 24.50 | 34.81 | 31.09 | 24.58 | 21.49 | 27.82 | 25.70 | 21.61 | 16.89 | 29.01 | 27.13 | 22.96 | 19.08 | 17.31 | 15.18 | 15.32 | 19.34 | 22.46 | 24.13 | 24.86 |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The Days of Sales Outstanding (DSO) ratio for Strategic Education Inc has shown some variability over the past eight quarters, ranging from a low of 21.50 days in Q1 2022 to a high of 34.93 days in Q3 2023. Generally, a lower DSO indicates that the company is able to collect its accounts receivable more quickly, which can improve its cash flow.
Unfortunately, the table provided does not include data on Days of Inventory on Hand or Number of Days of Payables, so a comprehensive analysis of the company's activity ratios in these areas cannot be conducted at this time. It would be beneficial to have this additional information to have a more complete picture of how efficiently Strategic Education Inc is managing its inventory and accounts payable.
Long-term
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 9.56 | 9.37 | 8.93 | 8.58 | 8.05 | 7.88 | 7.61 | 7.16 | 7.40 | 7.51 | 6.92 | 6.20 | 6.32 | 8.66 | 8.65 | 8.66 | 8.52 | 8.37 | 7.55 | 6.42 |
| Total asset turnover | 0.53 | 0.52 | 0.50 | 0.49 | 0.49 | 0.48 | 0.48 | 0.46 | 0.48 | 0.48 | 0.45 | 0.43 | 0.44 | 0.49 | 0.57 | 0.57 | 0.56 | 0.55 | 0.50 | 0.43 |
The fixed asset turnover ratio for Strategic Education Inc has been showing an increasing trend over the past eight quarters, indicating that the company is generating more revenue per dollar of fixed assets invested. This implies improved efficiency in utilizing fixed assets for revenue generation.
On the other hand, the total asset turnover ratio has remained relatively stable around the 0.50 mark over the same period. This suggests that the company's overall efficiency in generating sales from all its assets has been consistent.
Overall, the increasing trend in fixed asset turnover coupled with the stable total asset turnover indicates that Strategic Education Inc is effectively managing its assets to generate revenue, which is a positive indicator of operational efficiency and effective resource utilization.