Grand Canyon Education Inc (LOPE)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	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	767,332	734,001	698,483	763,331
Receivables	US$ in thousands	80,315	108,245	33,719	105,535	85,761	104,759	34,694	102,006	75,179	96,910	21,218	92,553	63,777	93,192	22,238	79,075	51,243	86,936	17,083	78,076
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

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $960,866K ÷ $80,315K
= 11.96

The receivables turnover ratio for Grand Canyon Education Inc has shown fluctuations over the past eight quarters. In Q2 2023, the receivables turnover ratio spiked to 27.53, indicating that the company collected its accounts receivable more than 27 times during that quarter. This suggests an efficient collection process and liquidity management during that period.

However, this sharp increase in Q2 2023 is an outlier compared to the relatively stable receivables turnover ratios in the other quarters, which ranged between 8.63 and 11.99. It is important to investigate the reasons behind this sudden increase to determine if it was influenced by any one-time events or changes in the company's operations.

Overall, the company's receivables turnover ratios have been relatively consistent, reflecting a generally effective accounts receivable management strategy. Monitoring this ratio going forward will be crucial to assess the company's ability to efficiently collect outstanding receivables and manage liquidity.