Grand Canyon Education Inc (LOPE)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,033,060 | 960,866 | 911,304 | 897,963 | 839,694 |
| Receivables | US$ in thousands | 83,553 | 80,315 | 85,761 | 75,179 | 63,777 |
| Receivables turnover | 12.36 | 11.96 | 10.63 | 11.94 | 13.17 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,033,060K ÷ $83,553K
= 12.36
To analyze Grand Canyon Education Inc's receivables turnover, we look at the data provided for the years 2020 to 2024. The receivables turnover ratio measures how efficiently a company collects its outstanding customer receivables during a specific period.
From the data provided:
- In December 2020, the receivables turnover ratio was 13.17, indicating that, on average, Grand Canyon Education Inc collected its outstanding receivables approximately 13.17 times during the year.
- In December 2021, the ratio decreased to 11.94, suggesting a slight reduction in the efficiency of receivables collection compared to the previous year.
- Subsequently, in December 2022, the turnover ratio further declined to 10.63, indicating a decrease in the efficiency of collecting outstanding receivables.
- However, the trend reversed in December 2023, with the ratio increasing to 11.96, implying an improvement in receivables collection efficiency compared to the previous year.
- By December 2024, the ratio rose to 12.36, indicating a continued improvement in the company's ability to collect outstanding receivables efficiently.
Overall, Grand Canyon Education Inc's receivables turnover ratios show some fluctuations over the years, with a general trend towards improvement in the efficiency of collecting outstanding customer receivables. It is essential for the company to maintain or enhance this efficiency to ensure healthy cash flow and effective management of its accounts receivable.
Peer comparison
Dec 31, 2024