Strategic Education Inc (STRA)

Short-term

Turnover ratios

The activity ratios for Strategic Education Inc provide insights into how efficiently the company manages its assets and liabilities.

1. Inventory Turnover: The inventory turnover ratio shows how many times a company's inventory is sold and replaced over a period. Strategic Education Inc had significant fluctuations in its inventory turnover ratio, with a peak of 279.83 in September 2021 and a notable ratio of 159.67 in March 2023. This indicates that the company managed its inventory well during those periods.

2. Receivables Turnover: The receivables turnover ratio measures how efficiently a company collects its accounts receivable. The data shows that Strategic Education Inc's receivables turnover remained constant at "N/A" throughout the reported periods. This implies that the company may have stable collection practices.

3. Payables Turnover: The payables turnover ratio reflects how quickly a company pays its suppliers. The data indicates that Strategic Education Inc's payables turnover remained constant at "N/A" throughout the reported periods, suggesting a consistent payment behavior towards suppliers.

4. Working Capital Turnover: The working capital turnover ratio evaluates how effectively a company utilizes its working capital to generate sales. Strategic Education Inc showed varying working capital turnover ratios over time, with the ratio peaking at 13.79 in December 2024. This suggests that the company efficiently utilized its working capital to drive sales during that period.

Overall, the analysis of activity ratios for Strategic Education Inc highlights its management of assets, inventory, receivables, payables, and working capital over the reported periods.

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Average number of days

Based on the provided data, the activity ratios for Strategic Education Inc can be analyzed as follows:

1. Days of Inventory on Hand (DOH):
- As of June 30, 2021, the company held inventory for an average of 3.65 days before selling it.
- This figure decreased significantly to 1.30 days as of September 30, 2021, indicating the company was able to sell its inventory at a faster rate.
- The DOH remained relatively stable at around 2.29 days as of March 31, 2023.
- In general, a lower DOH value suggests that the company is efficiently managing its inventory levels and converting inventory into sales quickly.

2. Days of Sales Outstanding (DSO):
- The DSO data is not available for the periods mentioned, indicating that specific information about the company's sales collection efficiency is not provided in the dataset.
- Without the DSO data, it is difficult to assess how quickly the company is collecting payment from its customers.

3. Number of Days of Payables:
- The dataset does not provide information on the number of days of payables for the company during the specified periods.
- The absence of this data makes it challenging to evaluate how long the company takes to pay its suppliers and manage its working capital effectively.

In conclusion, Strategic Education Inc appears to have effectively managed its inventory levels, as evidenced by the decreasing trend in the Days of Inventory on Hand. However, further information on Days of Sales Outstanding and Number of Days of Payables is needed to gain a more comprehensive understanding of the company's overall activity ratios and working capital management.

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Long-term

The Fixed Asset Turnover ratio for Strategic Education Inc has shown fluctuations over the period analyzed. It started at a high of 8.66 in March 2020, increased slightly to 8.76 by June 2020, and continued to rise until reaching a peak of 8.90 in June 2023. However, in the most recent period analyzed, the ratio dropped to 3.68 in March 2023. This ratio measures how efficiently the company is generating revenue from its fixed assets.

On the other hand, the Total Asset Turnover ratio has also varied over time. It began at 0.57 in March 2020 and decreased consistently until reaching a low of 0.44 in March 2021. After this decline, the ratio started to recover and reached 0.60 in December 2024. This ratio reflects the company's ability to generate sales from its total assets.

Both ratios give insights into how effectively Strategic Education Inc is utilizing its assets to generate revenue. The Fixed Asset Turnover ratio indicates the efficiency of the company's fixed asset investments, while the Total Asset Turnover ratio provides a broader view of asset utilization across the business. A high Fixed Asset Turnover ratio combined with a stable Total Asset Turnover ratio may suggest that the company is effectively utilizing its fixed assets to drive revenue growth.