Strategic Education Inc (STRA)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	168,481	213,667	268,918	187,509	419,693
Short-term investments	US$ in thousands	39,728	9,156	6,501	7,557	34,874
Total current liabilities	US$ in thousands	209,619	209,944	195,755	200,052	156,748
Cash ratio		0.99	1.06	1.41	0.98	2.90

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($168,481K + $39,728K) ÷ $209,619K
= 0.99

The cash ratio of Strategic Education Inc has fluctuated over the past five years, ranging from a high of 3.01 in 2019 to a low of 1.17 in 2020. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio suggests that the company is more capable of meeting its short-term obligations without relying on external sources of funding.

In 2021, the cash ratio improved significantly to 1.62, indicating a stronger liquidity position compared to the previous year. However, this ratio declined in 2022 and 2023 to 1.27 and 1.21, respectively, although it remained above 1, suggesting the company still has sufficient cash reserves to cover its short-term liabilities.

Overall, the trend in the cash ratio for Strategic Education Inc shows some variability but generally indicates a reasonable level of liquidity and financial stability over the years analyzed. It is important for the company to continue monitoring its cash position to ensure it can meet its obligations during both stable and challenging economic conditions.