Grand Canyon Education Inc (LOPE)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables turnover | 12.36 | 8.62 | 28.67 | 7.18 | 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 |
| Payables turnover | 10.00 | 9.38 | 11.56 | 8.65 | 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 |
| Working capital turnover | 3.34 | 3.55 | 3.55 | 3.47 | 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 |
Grand Canyon Education Inc's activity ratios provide insights into the efficiency of the company's operations.
1. Receivables Turnover:
- The company's receivables turnover ratio fluctuated over the years, indicating variations in how quickly it collects payments from customers.
- Higher turnover ratios suggest that the company is efficiently managing its accounts receivable and collecting payments faster.
- The trend shows some improvement from March 2020 to December 2024, with some fluctuations along the way.
2. Payables Turnover:
- The payables turnover ratio reflects how efficiently the company pays its suppliers and other short-term creditors.
- A higher turnover ratio indicates that the company is paying its payables more frequently, which can be beneficial in managing cash flow.
- The data shows fluctuations in the payables turnover ratio over the years, with variations in the company's payment practices.
3. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently the company is using its working capital to generate revenue.
- A higher ratio suggests that the company is effectively utilizing its working capital to generate sales.
- The trend in working capital turnover ratio shows fluctuations, indicating changes in how efficiently the company is utilizing its resources to drive revenue growth.
Overall, analyzing these activity ratios can help stakeholders understand how effectively Grand Canyon Education Inc is managing its assets, liabilities, and working capital to support its business operations and financial performance.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 29.52 | 42.35 | 12.73 | 50.84 | 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 |
| Number of days of payables | days | 36.51 | 38.92 | 31.57 | 42.22 | 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 |
The Days of Inventory on Hand (DOH) ratio for Grand Canyon Education Inc remained constant at an average of "— days" throughout the period from March 31, 2020, to December 31, 2024.
The Days of Sales Outstanding (DSO) ratio, which measures how quickly the company collects its accounts receivable, fluctuated during the period. It decreased from 36.41 days on March 31, 2020, to 8.88 days on June 30, 2021, and then increased to 50.84 days on March 31, 2024.
The Number of Days of Payables ratio, reflecting how long it takes the company to pay its suppliers, varied over the period. It ranged from 26.45 days on September 30, 2020, to 64.42 days on September 30, 2021, and then decreased to 36.51 days on December 31, 2024.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 1.01 | 1.03 | 1.01 | 0.95 | 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 |
The long-term activity ratios of Grand Canyon Education Inc provide insights into the efficiency of the company's asset utilization over time.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how efficiently a company is generating sales revenue from its investment in fixed assets.
- The trend in Grand Canyon Education's fixed asset turnover shows relatively stable performance from March 2020 to September 2022, ranging from 4.54 to 6.55.
- There is a noticeable decrease in the fixed asset turnover ratio in the later part of 2022, reaching a low of 4.54 in September 2022, before seeing a recovery and stabilization around 5.66 to 6.00 from March 2023 to June 2024.
- A higher fixed asset turnover ratio indicates better utilization of fixed assets to generate sales, while a declining ratio may suggest inefficiencies in asset management or a slowdown in revenue generation relative to fixed asset investments.
2. Total Asset Turnover:
- The total asset turnover ratio reflects how well a company utilizes its total assets to generate revenue.
- Grand Canyon Education's total asset turnover ratio shows a gradual increase over the analyzed period, starting from 0.45 in March 2020 and peaking at 1.09 in December 2022.
- The ratio fluctuates slightly around the 1.00 mark from March 2023 to December 2024, indicating steady asset utilization efficiency.
- An increasing total asset turnover ratio signifies improved efficiency in generating revenue from all assets, while a declining ratio could indicate underutilization of assets or a decrease in revenue relative to total assets.
In conclusion, the analysis of Grand Canyon Education Inc's long-term activity ratios suggests a generally efficient utilization of assets, with variations in performance over time that may require further investigation to understand the underlying factors impacting the company's operational efficiency and revenue generation capabilities.