Grand Canyon Education Inc (LOPE)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover — — — — — — — — — — — — — — — — 659.17 618.36 580.23 562.63
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
Payables turnover 14.40 10.68 11.12 11.56 12.50 9.98 10.10 6.01 7.19 5.67 10.03 12.84 13.03 13.80 10.37 10.44 13.33 8.94 9.53 12.70
Working capital turnover 4.00 5.37 5.18 4.67 5.25 5.15 4.48 2.65 1.11 — — 3.86 3.91 4.81 11.18 6.88 6.78 6.47 — 10.57

Inventory turnover is not provided in the data table, indicating that Grand Canyon Education Inc may not have a significant level of inventory in its operations.

The receivables turnover ratio for Grand Canyon Education Inc fluctuated throughout the quarters, with Q2 2023 showing the highest turnover at 27.53 and Q3 2023 the lowest at 8.70. This ratio indicates how efficiently the company is collecting its outstanding receivables from customers.

The payables turnover ratio also varied, with Q4 2023 showing the highest turnover at 8.76 and Q1 2022 the lowest at 3.37. This ratio reflects how quickly the company pays its suppliers for goods and services received.

The working capital turnover ratio for Grand Canyon Education Inc ranged from 3.65 in Q1 2022 to 7.08 in Q3 2022. This ratio measures the efficiency of the company in using its working capital to generate sales revenue.

Overall, fluctuations in these activity ratios suggest changes in how effectively Grand Canyon Education Inc manages its assets, liabilities, and working capital to drive its business operations. Monitoring these ratios over time can provide insights into the company's operational efficiency and potential areas for improvement.

Average number of days

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
Days of inventory on hand (DOH) days — — — — — — — — — — — — — — — — 0.55 0.59 0.63 0.65
Days of sales outstanding (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
Number of days of payables days 25.36 34.18 32.82 31.58 29.21 36.58 36.13 60.71 50.77 64.42 36.41 28.43 28.01 26.45 35.20 34.95 27.38 40.81 38.32 28.75

The activity ratios of Grand Canyon Education Inc indicate its efficiency in managing its operations and cash flow.

1. Days of Inventory on Hand (DOH): Unfortunately, the data for this ratio is not available for any of the reported quarters. This ratio typically measures how long, on average, inventory is held before being sold. The absence of this data makes it challenging to assess the company's efficiency in managing its inventory levels.

2. Days of Sales Outstanding (DSO): This ratio saw significant fluctuations over the quarters, ranging from as low as 13.26 days to as high as 42.30 days. A lower DSO indicates that the company is collecting its accounts receivable more quickly, which is generally favorable. However, the inconsistency in this ratio may suggest potential issues with credit policies or collection efforts that need to be addressed.

3. Number of Days of Payables: The number of days of payables increased from Q1 2022 to Q2 2023, peaking at 108.15 days in Q1 2022. A higher number of days of payables indicates that the company is taking longer to pay its suppliers, which can sometimes be an intentional strategy to manage cash flow. However, excessively long payment periods could strain relationships with suppliers.

In conclusion, Grand Canyon Education Inc may need to focus on improving the consistency of its days of sales outstanding and closely monitor its days of payables to ensure they are in line with industry standards and do not negatively impact supplier relations. Efforts to manage inventory more effectively could also provide valuable insights into the company's operational efficiency.

Long-term

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
Fixed asset turnover 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 6.41 6.19 5.98 6.57
Total asset turnover 1.03 1.09 1.10 1.05 1.09 0.84 0.83 0.71 0.53 0.52 0.47 0.45 0.46 0.45 0.45 0.46 0.45 0.42 0.42 0.47

The fixed asset turnover ratio for Grand Canyon Education Inc has been consistently high and relatively stable over the past eight quarters, ranging from 5.66 to 6.61. This indicates that the company efficiently generates revenue from its fixed assets, such as property, plant, and equipment. A high fixed asset turnover ratio suggests that the company is effectively utilizing its fixed assets to generate sales.

In contrast, the total asset turnover ratio shows some variability over the quarters, ranging from 0.98 to 1.15. This ratio indicates the company's ability to generate revenue from all assets, including both fixed and current assets. A higher total asset turnover ratio suggests that the company is efficient in generating sales from all of its assets.

Overall, both the fixed asset turnover and total asset turnover ratios for Grand Canyon Education Inc indicate that the company is effectively utilizing its assets to generate revenue. The high and stable fixed asset turnover ratio, in particular, suggests efficient management and utilization of fixed assets in revenue generation.