Strategic Education Inc (STRA)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,219,930 | 1,132,920 | 1,065,480 | 1,131,690 | 1,027,650 |
| Total current assets | US$ in thousands | 304,943 | 329,069 | 329,061 | 367,786 | 286,122 |
| Total current liabilities | US$ in thousands | 216,460 | 209,619 | 209,944 | 195,755 | 200,052 |
| Working capital turnover | 13.79 | 9.48 | 8.94 | 6.58 | 11.94 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,219,930K ÷ ($304,943K – $216,460K)
= 13.79
Based on the data provided, the working capital turnover ratio for Strategic Education Inc has fluctuated over the last five years. In December 2020, the ratio stood at 11.94, indicating that the company generated $11.94 in net revenue for every dollar of working capital invested. However, by the end of December 2021, the ratio had decreased to 6.58, suggesting a decrease in efficiency in utilizing working capital.
Subsequently, there was an improvement in the ratio in December 2022, reaching 8.94, and a further increase to 9.48 by December 2023, indicating better utilization of working capital in generating revenue. Finally, by December 2024, the working capital turnover ratio significantly increased to 13.79, reflecting a notable efficiency in converting working capital into revenue.
Overall, the trend in working capital turnover for Strategic Education Inc shows variability but with an overall improvement in efficiency in utilizing working capital effectively to generate revenue over the five-year period. It is essential for the company to maintain this positive trend to ensure optimal financial performance and sustainable growth.
Peer comparison
Dec 31, 2024