Strategic Education Inc (STRA)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	137,074	168,481	213,667	268,918	187,509
Short-term investments	US$ in thousands	46,949	39,728	9,156	6,501	7,557
Total current liabilities	US$ in thousands	216,460	209,619	209,944	195,755	200,052
Cash ratio		0.85	0.99	1.06	1.41	0.98

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($137,074K + $46,949K) ÷ $216,460K
= 0.85

The cash ratio of Strategic Education Inc has shown some variability over the past five years. It stood at 0.98 as of December 31, 2020, indicating that the company had $0.98 of cash and cash equivalents for every $1 of current liabilities. The ratio improved to 1.41 by December 31, 2021, suggesting a stronger ability to meet short-term obligations with available cash.

However, by the end of 2022, the cash ratio declined to 1.06, although it remained above 1, indicating a relatively healthy liquidity position. In the subsequent years, the ratio fluctuated further, dropping to 0.99 by December 31, 2023, and then to 0.85 by December 31, 2024. These lower ratios may suggest a potentially tighter cash position compared to previous years, possibly indicating a greater reliance on other liquid assets or short-term financing to meet obligations.

Overall, while the company has maintained a cash ratio above 1 for most of the period, indicating a generally sufficient level of cash to cover short-term liabilities, the downward trend in recent years warrants monitoring to ensure continued liquidity and financial stability.