Grand Canyon Education Inc (LOPE)

Total asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	960,866	911,304	897,963	839,694	767,332
Total assets	US$ in thousands	930,463	832,749	1,222,740	1,844,580	1,690,290
Total asset turnover		1.03	1.09	0.73	0.46	0.45

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $960,866K ÷ $930,463K
= 1.03

The total asset turnover ratio measures the efficiency with which Grand Canyon Education Inc generates revenue relative to its total assets. A higher ratio indicates that the company is more effective at utilizing its assets to generate sales.

Looking at the data provided, we observe fluctuations in the total asset turnover over the past five years. In 2023, the total asset turnover ratio was 1.03, slightly lower than the ratio in 2022 of 1.09. This implies that in 2023, the company generated $1.03 in revenue for every dollar of assets, compared to $1.09 in the previous year.

The significant increase in total asset turnover from 2020 to 2021, where it rose from 0.46 to 0.73, indicates an improvement in the efficiency of asset utilization. This could be due to better management of assets or increased sales relative to the asset base.

However, it is worth noting that the total asset turnover remained constant at 0.46 from 2019 to 2020 and then increased in 2021. This could suggest that the company made strategic changes in 2021 to improve asset utilization and generate more revenue.

Overall, the fluctuation in the total asset turnover ratio for Grand Canyon Education Inc indicates varying levels of efficiency in utilizing assets to generate sales over the past five years. Further analysis of the company's operations and financial performance would be necessary to understand the factors driving these fluctuations.