Strategic Education Inc (STRA)

Liquidity ratios

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
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
Quick 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
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

Strategic Education Inc's liquidity ratios have shown fluctuations over the years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally been above 1, indicating that the company has enough current assets to meet its current obligations. However, there was a noticeable decrease in the current ratio from December 31, 2020, to March 31, 2021, indicating a potential strain on liquidity during that period.

The quick ratio, also known as the acid-test ratio, provides a more conservative measure of liquidity by excluding inventory from current assets. Similar to the current ratio, the quick ratio has generally been above 1, suggesting that the company has a reasonable level of liquidity. However, there were periods, such as March 31, 2023, and September 30, 2023, where the quick ratio fell below 1, indicating a potential challenge in meeting short-term obligations without relying on inventory.

The cash ratio, which is the most stringent liquidity ratio, measures the company's ability to cover its current liabilities with its cash and cash equivalents. Strategic Education Inc has maintained a strong cash ratio above 1 throughout the periods, indicating the company's ability to pay off its short-term debts using its cash reserves.

Overall, while the company has generally maintained healthy liquidity levels, there have been periods of lower ratios which may warrant further analysis to understand the underlying reasons for the fluctuations. It is essential for Strategic Education Inc to monitor its liquidity position closely to ensure it can meet its short-term financial obligations effectively.


Additional liquidity measure

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 conversion cycle days 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.29 0.00 0.00 0.00 0.00 0.00 1.30 3.65 0.00 0.00 0.00 0.00 0.00

The cash conversion cycle of Strategic Education Inc has exhibited variations over the specified periods. From March 31, 2020, to June 30, 2021, the company maintained a notably efficient cash conversion cycle, consistently recording cycle durations of 0.00 days. However, there was a slight deviation on June 30, 2021, with a cycle of 3.65 days, indicating a temporary delay in converting investments into cash. This was swiftly rectified as the cycle decreased to 1.30 days on September 30, 2021.

The company managed to return to an optimal cycle duration of 0.00 days by December 31, 2021, and maintained this efficiency until March 31, 2022. Notably, on March 31, 2023, the cycle was slightly extended to 2.29 days, before reverting to 0.00 days in subsequent periods. Strategic Education Inc's ability to efficiently convert its investments, operations, and sales into cash demonstrates effective working capital management and liquidity practices during the analyzed periods.