Strategic Education Inc (STRA)
Cash ratio
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Cash and cash equivalents | US$ in thousands | 137,074 | 195,889 | 243,592 | 237,328 | 181,425 | 167,707 | 181,024 | 202,824 | 213,667 | 262,757 | 262,941 | 293,419 | 268,918 | 274,774 | 261,585 | 238,290 | 187,509 | 717,804 | 470,319 | 442,845 |
Short-term investments | US$ in thousands | 46,949 | 26,182 | 26,128 | 31,448 | 39,728 | 28,960 | 25,468 | 24,490 | 9,156 | 11,387 | 8,854 | 6,785 | 6,501 | 2,632 | 4,040 | 6,455 | 7,557 | 20,457 | 23,106 | 26,842 |
Total current liabilities | US$ in thousands | 216,460 | 285,840 | 253,439 | 261,723 | 209,619 | 265,491 | 242,087 | 241,709 | 209,944 | 259,917 | 235,633 | 254,836 | 195,755 | 255,648 | 252,189 | 249,757 | 200,052 | 195,295 | 148,884 | 160,888 |
Cash ratio | 0.85 | 0.78 | 1.06 | 1.03 | 1.06 | 0.74 | 0.85 | 0.94 | 1.06 | 1.05 | 1.15 | 1.18 | 1.41 | 1.09 | 1.05 | 0.98 | 0.98 | 3.78 | 3.31 | 2.92 |
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, which measures the company's ability to cover its short-term liabilities using its cash and cash equivalents, shows some fluctuations over the given periods.
From March 2020 to September 2020, the cash ratio increased steadily from 2.92 to 3.78, indicating a strong ability to cover short-term obligations with cash on hand. However, by December 2020, the ratio dropped to 0.98, suggesting a decrease in liquidity compared to the previous quarter.
The trend continued through the following quarters of 2021 and early 2022, as the cash ratio remained below 1.5, reflecting a relatively lower level of liquidity. This could indicate potential challenges in meeting short-term obligations solely with available cash resources.
Towards the end of 2022 and entering 2023, the cash ratio fluctuated between 0.74 and 1.18, showing some variability in liquidity levels. By the end of 2024, the ratio settled at 0.85, which indicates that the company may need to manage its cash and cash equivalents more efficiently to meet short-term obligations effectively.
Overall, the cash ratio of Strategic Education Inc fluctuated over the reviewed periods, suggesting variations in the company's ability to cover short-term liabilities with its available cash resources. It would be important for the company to closely monitor and manage its cash position to ensure sufficient liquidity to meet its obligations as they fall due.
Peer comparison
Dec 31, 2024