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.