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.
Peer comparison
Dec 31, 2023