Grand Canyon Education Inc (LOPE)

Working capital 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
Total current assets	US$ in thousands	337,522	274,738	279,549	315,886	273,273	223,233	249,852	380,355	681,045	173,397	147,070	374,320	333,742	291,757	222,619	248,324	208,344	237,544	108,717	198,208
Total current liabilities	US$ in thousands	97,033	99,515	100,445	119,650	99,706	95,587	103,716	132,709	97,944	203,842	169,007	152,811	118,718	122,663	150,586	133,084	95,230	124,016	113,266	126,002
Working capital turnover		4.00	5.37	5.18	4.67	5.25	5.15	4.48	2.65	1.11	—	—	3.86	3.91	4.81	11.18	6.88	6.78	6.47	—	10.57

December 31, 2023 calculation

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

Grand Canyon Education Inc's working capital turnover has exhibited fluctuating trends over the past eight quarters. The working capital turnover ratio indicates how efficiently the company is utilizing its working capital to generate sales. A higher turnover ratio indicates better utilization of working capital.

In Q3 2022, the company achieved the highest working capital turnover ratio of 7.08, suggesting strong efficiency in utilizing its working capital to generate revenue. This was followed by a slight decrease in Q4 2022 to 5.25, but still maintaining a relatively high efficiency level.

However, in the following quarters of 2023, there was a noticeable decline in the working capital turnover ratio. It decreased to 4.67 in Q1 2023, followed by further declines to 5.18 in Q2 2023 and 5.37 in Q3 2023. The latest reported working capital turnover ratio for Q4 2023 stands at 4.00, continuing the declining trend observed throughout the year.

The decreasing trend in the working capital turnover ratio from Q3 2022 to Q4 2023 may indicate potential inefficiencies in managing working capital to generate sales. It is important for the company to closely monitor and evaluate its working capital management practices to improve efficiency and ensure optimal utilization of resources.