Grand Canyon Education Inc (LOPE)

Working capital 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
Total current assets	US$ in thousands	419,976	337,522	273,273	681,045	333,742
Total current liabilities	US$ in thousands	110,966	97,033	99,706	97,944	118,718
Working capital turnover		3.34	4.00	5.25	1.54	3.91

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,033,060K ÷ ($419,976K – $110,966K)
= 3.34

The working capital turnover ratio reflects how efficiently a company is utilizing its working capital to generate revenue. In the case of Grand Canyon Education Inc, the trend of the working capital turnover ratio over the years shows fluctuations in the efficiency of their working capital management.

- In December 31, 2020, the working capital turnover ratio was 3.91, indicating that for every dollar of working capital, the company generated $3.91 in revenue.
- By December 31, 2021, the ratio decreased to 1.54, suggesting a decline in the efficiency of working capital utilization compared to the previous year.
- However, there was a significant improvement in December 31, 2022, with the ratio soaring to 5.25, indicating a substantial increase in revenue generated per dollar of working capital.
- The ratio slightly decreased to 4.00 by December 31, 2023, but still remained at a relatively high level compared to 2021.
- In the most recent period ending December 31, 2024, the working capital turnover ratio decreased further to 3.34, signifying a slight decrease in efficiency in utilizing working capital to generate revenue compared to the previous year.

Overall, the working capital turnover ratios indicate some fluctuations in the efficiency of Grand Canyon Education Inc's working capital management, with significant improvements in certain years and slight decreases in others. Further analysis would be required to determine the underlying reasons for these fluctuations and their impact on the company's overall financial performance.