Grand Canyon Education Inc (LOPE)

Fixed asset turnover

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
Revenue (ttm) US$ in thousands 1,033,000 1,018,705 1,002,326 985,433 960,866 941,291 928,099 917,277 911,304 657,601 654,907 655,883 647,885 880,309 871,749 855,720 839,694 812,574 805,522 792,740
Property, plant and equipment US$ in thousands 176,823 176,234 173,827 172,186 169,699 164,638 154,709 150,391 147,504 144,872 139,632 136,677 136,120 134,508 133,003 131,929 128,657 126,679 124,066 121,349
Fixed asset turnover 5.84 5.78 5.77 5.72 5.66 5.72 6.00 6.10 6.18 4.54 4.69 4.80 4.76 6.54 6.55 6.49 6.53 6.41 6.49 6.53

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,033,000K ÷ $176,823K
= 5.84

Grand Canyon Education Inc's fixed asset turnover ratio has shown fluctuating trends over the reported periods. The ratio was relatively stable at a high level, averaging around 6.5 from March 2020 to June 2021. This indicated that the company was efficiently generating revenue from its investment in fixed assets during that time.

However, starting from December 2021, there was a notable decline in the fixed asset turnover ratio, dropping to 4.76 by the end of the year. This decrease could suggest that the company was facing challenges or experiencing inefficiencies in utilizing its fixed assets to generate revenue.

The trend continued through the following periods up to September 2022, where the fixed asset turnover ratio further decreased to 4.54, indicating a sustained period of lower efficiency in generating revenue from fixed assets.

There was a slight recovery in the ratio by December 2022, with a value of 6.18, but it remained below the levels seen before the decline started. The ratio continued to fluctuate around the 5.7-6.0 range in the subsequent periods, showing some level of stability but not fully recovering to the earlier high levels.

Overall, the analysis suggests that there was a significant decline in Grand Canyon Education Inc's fixed asset turnover ratio from December 2021 to September 2022, indicating potential inefficiencies in utilizing fixed assets to generate revenue. The company's ability to improve and sustain a higher fixed asset turnover ratio in the future may be crucial for enhancing operational efficiency and profitability.