Grand Canyon Education Inc (LOPE)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 29.52 | 30.51 | 34.35 | 30.56 | 27.72 |
| Number of days of payables | days | 36.51 | 25.36 | 29.21 | 38.89 | 28.01 |
| Cash conversion cycle | days | -6.99 | 5.15 | 5.14 | -8.33 | -0.28 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 29.52 – 36.51
= -6.99
The cash conversion cycle of Grand Canyon Education Inc has fluctuated over the past five years. As of December 31, 2020, the company had a negative cash conversion cycle of -0.28 days, indicating that it was able to convert its inventory and receivables into cash very quickly. By December 31, 2021, this trend continued with an even lower cash conversion cycle of -8.33 days, suggesting even more efficient cash conversion.
However, there was a significant shift by December 31, 2022, when the cash conversion cycle increased to 5.14 days. This suggests a delay in converting inventory and receivables into cash compared to the previous years. The trend continued in December 31, 2023, with a similar cash conversion cycle of 5.15 days.
Interestingly, by December 31, 2024, the cash conversion cycle experienced a significant improvement, dropping to -6.99 days. This indicates a return to a very efficient cash conversion process for the company.
Overall, the cash conversion cycle of Grand Canyon Education Inc has shown variability over the years, with some periods of highly efficient cash conversion and others with delays. Monitoring and managing this cycle will be crucial for optimizing the company's working capital management.
Peer comparison
Dec 31, 2024