Grand Canyon Education Inc (LOPE)

Days of sales outstanding (DSO)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		11.96	8.70	27.52	8.69	10.63	6.28	18.88	6.43	8.62	9.08	41.09	9.25	13.17	8.72	36.22	10.03	14.97	8.44	40.89	9.78
DSO	days	30.51	41.97	13.26	41.99	34.35	58.15	19.34	56.77	42.35	40.18	8.88	39.48	27.72	41.86	10.08	36.41	24.37	43.23	8.93	37.33

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.96
= 30.51

To analyze Grand Canyon Education Inc's Days Sales Outstanding (DSO) over the given periods, we observe fluctuations in the collection of accounts receivable. In Q4 2023, DSO decreased to 30.44 days from 41.97 days in Q3 2023, reflecting an improvement in the company's ability to collect payments from customers more swiftly. This decrease contrasts with the significant increase in DSO observed in Q3 2023 from Q2 2023, indicating potential challenges in collections during that period.

The exceptionally low DSO of 13.26 days in Q2 2023 suggests efficient management of accounts receivable during that quarter. However, a subsequent sharp increase to 41.99 days in Q1 2023 signals a delayed collection of sales, necessitating attention to improve cash flow management.

Comparing with the same periods in the previous year, we notice fluctuations in DSO. Notably, a decrease from 42.30 days in Q3 2022 to 14.04 days in Q2 2022 indicates enhanced efficiency in collections during that period. The increase to 41.20 days in Q1 2022 implies a potential challenge in receivables management at the beginning of the year.

Overall, the analysis of DSO for Grand Canyon Education Inc highlights fluctuations in the company's collection efficiency, indicating periods of improvement and challenges. Careful monitoring and strategic measures may be required to maintain a healthy balance between sales and collections for optimal cash flow management.