Strategic Education Inc (STRA)

Strategic Education Inc's current ratio has shown some fluctuation over the years, ranging from 1.41 to 1.88. The current ratio measures the company's ability to cover its short-term obligations with its current assets. An increasing trend in the current ratio indicates an improvement in the company's liquidity position, as it suggests that the company has more current assets available to meet its current liabilities.

The quick ratio, on the other hand, has also experienced variations, with values ranging from 0.85 to 1.41. The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity as it excludes inventory from current assets. A higher quick ratio is preferred as it indicates the company's ability to meet its short-term obligations without relying on selling inventory.

Furthermore, the cash ratio for Strategic Education Inc has also shown some variability, ranging from 0.85 to 1.41. The cash ratio is the most conservative liquidity measure as it only considers cash and cash equivalents as current assets. A higher cash ratio implies that the company has sufficient liquid assets to cover its short-term liabilities without relying on other current assets.

Overall, Strategic Education Inc's liquidity ratios indicate that the company has generally maintained a satisfactory liquidity position over the years, with the ability to meet its short-term obligations. However, it is important for investors and analysts to continue monitoring these ratios to ensure the company's financial health and ability to weather potential challenges.

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Additional liquidity measure

Based on the data provided, the cash conversion cycle for Strategic Education Inc has consistently been at 0.00 days from December 31, 2020, to December 31, 2024. This indicates that the company is effectively managing its cash flow, with minimal time taken to convert its investments in inventory and accounts receivable into cash. A low or zero cash conversion cycle is a positive indicator as it signifies that the company is efficiently utilizing its resources to generate cash and meet its financial obligations. Strategic Education Inc's ability to operate with a swift cash conversion cycle demonstrates strong liquidity management and financial efficiency.