Strategic Education Inc (STRA)

Current 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
Total current assets	US$ in thousands	304,943	383,514	398,868	390,447	329,069	350,635	350,914	357,013	329,061	402,748	395,824	417,848	367,786	406,481	393,635	352,928	286,122	806,375	553,496	532,783
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
Current ratio		1.41	1.34	1.57	1.49	1.57	1.32	1.45	1.48	1.57	1.55	1.68	1.64	1.88	1.59	1.56	1.41	1.43	4.13	3.72	3.31

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $304,943K ÷ $216,460K
= 1.41

The current ratio of Strategic Education Inc has exhibited fluctuations over the past few years, indicating changes in the company's liquidity position. The ratio stood at a healthy level of around 3.31 as of March 31, 2020, displaying the company's ability to cover its short-term obligations with its current assets. The ratio improved steadily, reaching a peak of 4.13 on September 30, 2020, suggesting strong liquidity and a comfortable cushion to meet current liabilities.

However, the ratio witnessed a sharp decline to 1.43 by the end of December 31, 2020, raising concerns about the company's short-term liquidity position. This downward trend continued into 2021, with the ratio hovering around 1.40-1.60 range, indicating a relatively weaker ability to cover current liabilities with current assets.

By the end of December 31, 2021, the current ratio improved to 1.88, showing some recovery in liquidity. Subsequently, the ratio fluctuated between 1.30-1.70 in 2022 and 2023, reflecting ongoing challenges in effectively managing short-term obligations.

As of December 31, 2024, the current ratio was at 1.41, signaling a moderate liquidity position. Overall, the fluctuating current ratio of Strategic Education Inc highlights varying levels of liquidity over the years, indicating the need for the company to effectively manage its short-term assets and liabilities to ensure financial stability.