Strategic Education Inc (STRA)

Cash conversion cycle

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	—	—	—	2.27	—	—	—	—	—	1.10	2.96	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	24.50	34.81	31.09	24.58	21.49	27.82	25.70	21.61	16.89	29.01	27.13	22.96	19.08	17.31	15.18	15.32	19.34	22.46	24.13	24.86
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	24.50	34.81	31.09	26.85	21.49	27.82	25.70	21.61	16.89	30.11	30.10	22.96	19.08	17.31	15.18	15.32	19.34	22.46	24.13	24.86

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 24.50 – —
= 24.50

The cash conversion cycle of Strategic Education Inc has fluctuated over the past eight quarters, indicating variations in the company's efficiency in managing its cash flows. In Q4 2023, the cash conversion cycle stood at 24.52 days, showing an improvement compared to the previous quarter. This suggests that the company is able to convert its investments in inventory and accounts receivable into cash relatively quickly.

However, in Q3 2023 and Q2 2023, the cash conversion cycle increased to 34.93 days and 31.20 days respectively, indicating a slower conversion of investments into cash during those periods. This could be a result of factors such as extended payment terms for customers or delays in inventory turnover.

The cash conversion cycle was relatively consistent in Q1 2023 at 24.67 days and in Q4 2022 at 21.57 days, indicating stable cash conversion performance during those quarters.

Overall, the trend of the cash conversion cycle over the past eight quarters reveals some variability in Strategic Education Inc's ability to efficiently manage its working capital. Monitoring this metric going forward will be important to assess the company's cash flow dynamics and operational efficiency.