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.
Peer comparison
Dec 31, 2023