Grand Canyon Education Inc (LOPE)

Working capital 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 current assets	US$ in thousands	337,522	273,273	681,045	333,742	208,344
Total current liabilities	US$ in thousands	97,033	99,706	97,944	118,718	95,230
Working capital turnover		4.00	5.25	1.54	3.91	6.78

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $960,866K ÷ ($337,522K – $97,033K)
= 4.00

Grand Canyon Education Inc's working capital turnover has shown some variability over the past five years. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue. In 2023, the ratio is 4.00, indicating that the company generated $4.00 in revenue for every $1.00 of working capital invested.

Compared to the previous year, the working capital turnover decreased from 5.25 to 4.00, suggesting a slight decline in efficiency in 2023. However, it is important to note that the ratio fluctuated significantly over the five-year period, reaching a low of 1.54 in 2021 and a high of 6.88 in 2019.

The trend in Grand Canyon Education Inc's working capital turnover ratio indicates some inconsistencies in how effectively the company is managing its working capital to generate revenue. Further analysis of the company's operations and financial performance may be needed to understand the factors driving these fluctuations and to identify potential areas for improvement in working capital management.