Grand Canyon Education Inc (LOPE)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 12.36 | 11.96 | 10.63 | 11.94 | 13.17 | |
| DSO | days | 29.52 | 30.51 | 34.35 | 30.56 | 27.72 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 12.36
= 29.52
Based on the data provided, Grand Canyon Education Inc's Days Sales Outstanding (DSO) has shown a general increasing trend over the years, starting at 27.72 days on December 31, 2020, and reaching 29.52 days by December 31, 2024.
The DSO metric indicates the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO is generally preferred as it suggests that the company is able to collect cash from its customers more quickly.
In Grand Canyon Education Inc's case, the increase in DSO from 2020 to 2024 could indicate potential issues with the company's accounts receivable management or collection processes. A higher DSO may suggest delayed payments from customers, credit extension practices, or changes in customer behavior.
Further analysis and comparison with industry benchmarks or historical data could provide more insights into the efficiency of Grand Canyon Education Inc's accounts receivable management and its overall financial health.
Peer comparison
Dec 31, 2024