Strategic Education Inc (STRA)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,219,930 | 1,211,176 | 1,191,154 | 1,166,568 | 1,132,924 | 1,100,160 | 1,077,347 | 1,063,231 | 1,065,480 | 1,067,641 | 1,074,596 | 1,100,205 | 1,131,686 | 1,127,081 | 1,096,029 | 1,052,687 | 1,027,653 | 1,023,931 | 1,026,652 | 1,015,931 |
| Total current assets | US$ in thousands | 304,943 | 383,514 | 398,868 | 390,447 | 329,069 | 350,635 | 350,914 | 357,013 | 329,061 | 402,748 | 395,824 | 417,848 | 367,786 | 406,481 | 393,635 | 352,928 | 286,122 | 806,375 | 553,496 | 532,783 |
| Total current liabilities | US$ in thousands | 216,460 | 285,840 | 253,439 | 261,723 | 209,619 | 265,491 | 242,087 | 241,709 | 209,944 | 259,917 | 235,633 | 254,836 | 195,755 | 255,648 | 252,189 | 249,757 | 200,052 | 195,295 | 148,884 | 160,888 |
| Working capital turnover | 13.79 | 12.40 | 8.19 | 9.06 | 9.48 | 12.92 | 9.90 | 9.22 | 8.94 | 7.47 | 6.71 | 6.75 | 6.58 | 7.47 | 7.75 | 10.20 | 11.94 | 1.68 | 2.54 | 2.73 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,219,930K ÷ ($304,943K – $216,460K)
= 13.79
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales. A higher ratio indicates that the company is efficiently managing its working capital.
By analyzing the working capital turnover of Strategic Education Inc over various quarters, we can observe fluctuations in the ratio. The trend shows that the ratio fluctuated between 1.68 in September 30, 2020, to a peak of 13.79 in December 31, 2024.
The company experienced a significant improvement in its working capital turnover from December 31, 2020, to December 31, 2024, indicating better efficiency in utilizing its working capital to generate revenue.
The highest working capital turnover ratio of 13.79 in December 31, 2024, reflects that the company efficiently utilized its working capital to generate sales. However, it is essential to monitor the trend over time to ensure consistent efficiency in managing working capital.
Overall, Strategic Education Inc's working capital turnover ratio has shown improvement over the quarters, indicating better efficiency in utilizing its working capital to drive sales growth.
Peer comparison
Dec 31, 2024