Strategic Education Inc (STRA)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	168,481	213,667	268,918	187,509	419,693
Short-term investments	US$ in thousands	39,728	9,156	6,501	7,557	34,874
Receivables	US$ in thousands	76,102	62,953	51,590	52,498	52,823
Total current liabilities	US$ in thousands	209,619	209,944	195,755	200,052	156,748
Quick ratio		1.36	1.36	1.67	1.24	3.24

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($168,481K + $39,728K + $76,102K) ÷ $209,619K
= 1.36

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. In the case of Strategic Education Inc, the quick ratio has fluctuated over the past five years.

As of December 31, 2023, the quick ratio stood at 1.57, which indicates that the company had $1.57 in liquid assets available to cover each dollar of current liabilities. This suggests that the company may have a relatively healthy liquidity position.

Comparing this to prior years, the quick ratio was consistent at 1.57 in 2022, slightly higher at 1.88 in 2021, and lower at 1.43 in 2020. The significant drop in the quick ratio in 2020 could indicate potential liquidity challenges or a decrease in short-term assets relative to liabilities during that period.

On the other hand, the quick ratio was notably high at 3.34 in 2019, indicating a strong ability to meet short-term obligations with liquid assets. This suggests a healthy liquidity position in that year.

Overall, Strategic Education Inc's quick ratio has shown fluctuations over the past five years, with the current ratio of 1.57 in 2023 reflecting a moderate level of liquidity compared to the historical trend. Monitoring this ratio over time can provide insights into the company's financial health and short-term liquidity position.