Grand Canyon Education Inc (LOPE)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	254,454	250,000	228,117	216,113	195,436
Payables	US$ in thousands	17,676	20,006	24,306	16,583	14,835
Payables turnover		14.40	12.50	9.39	13.03	13.17

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $254,454K ÷ $17,676K
= 14.40

The payables turnover ratio for Grand Canyon Education Inc has shown an increasing trend over the years, indicating an improvement in the company's ability to efficiently manage its trade payables. In 2023, the payables turnover ratio was 8.76, showing that the company paid off its trade payables approximately 8.76 times during the year. This increase from 2022's ratio of 7.52 suggests that the company is now paying off its payables at a faster rate.

The significant improvement in the payables turnover ratio from 2021 to 2022, and further to 2023, indicates that Grand Canyon Education Inc has been able to better leverage its resources and liquidity to settle its payables within a shorter timeframe. It is worth noting that in 2020 and 2019, the payables turnover ratios were reported as 0.00, which may indicate either an anomaly in the data or a significant change in the company's payables management practices during those years.

Overall, the increasing trend in the payables turnover ratio reflects positively on the company's financial efficiency and liquidity management, suggesting a more effective utilization of resources and potentially improved vendor relationships.