Grand Canyon Education Inc (LOPE)

Grand Canyon Education Inc's liquidity ratios show a strong ability to meet short-term obligations and cover immediate financial needs. The current ratio, which measures the company's ability to pay off current liabilities with current assets, has shown a healthy upward trend over the years, reaching a peak of 6.95 in December 31, 2021. This indicates that the company had $6.95 in current assets for every $1 in current liabilities as of that date.

Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventories from current assets, also demonstrates a robust liquidity position for Grand Canyon Education Inc. The quick ratio has consistently been well above 1, with a high of 6.90 as of December 31, 2021, showing the company's ability to meet short-term obligations even without relying on selling inventory.

Furthermore, the cash ratio, which specifically looks at the company's ability to cover current liabilities with cash and cash equivalents, has also been strong and stable over the years. With a peak of 6.14 on December 31, 2021, the cash ratio indicates that Grand Canyon Education Inc had more than enough cash on hand to cover its immediate obligations during that period.

Overall, the liquidity ratios suggest that Grand Canyon Education Inc has a solid financial position and ample resources to meet its short-term obligations efficiently.

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Additional liquidity measure

The cash conversion cycle of Grand Canyon Education Inc has shown fluctuations over the years. As of December 31, 2020, the company had a negative cash conversion cycle indicating that it was able to convert its investments into cash quickly. However, by December 31, 2021, this cycle worsened significantly to -8.33 days, which could suggest inefficiencies in the company's operations in managing its working capital.

Subsequently, by December 31, 2022, the cash conversion cycle improved to 5.14 days, indicating that the company was able to more efficiently convert its investments into cash within the cycle period. This trend continued into December 31, 2023, with a slightly higher cycle of 5.15 days, showing stability in the company's working capital management.

Interestingly, by December 31, 2024, the cash conversion cycle reverted to a negative figure of -6.99 days, implying that the company had further improved its ability to convert investments into cash quickly. Overall, Grand Canyon Education Inc has displayed variations in its cash conversion cycle over the years, but appears to have made positive strides in optimizing its working capital efficiency.