Strategic Education Inc (STRA)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,135,410	1,068,950	1,135,240	980,332	997,137
Total current assets	US$ in thousands	329,069	329,061	367,786	286,122	524,094
Total current liabilities	US$ in thousands	209,619	209,944	195,755	200,052	156,748
Working capital turnover		9.51	8.97	6.60	11.39	2.71

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,135,410K ÷ ($329,069K – $209,619K)
= 9.51

The working capital turnover ratio for Strategic Education Inc has shown varying trends over the past five years. In 2023, the ratio stands at 9.48, indicating that the company generated $9.48 in revenue for every dollar of working capital during the year. This figure represents an improvement compared to the previous year, where the ratio was 8.94.

The significant increase in the working capital turnover from 2021 to 2022 suggests that the company became more efficient in utilizing its working capital to generate revenue. However, the ratio dipped in 2023 compared to 2022, although it remains relatively high.

A high working capital turnover ratio generally indicates that a company is efficiently utilizing its working capital to generate sales. Strategic Education Inc's consistent above-average working capital turnover ratios suggest the company's effective management of its working capital to support its operations and revenue generation.

Overall, the varying trends in the working capital turnover ratios over the years indicate fluctuations in the company's efficiency in utilizing its working capital to drive sales.