Grand Canyon Education Inc (LOPE)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 29.52 | 42.35 | 12.73 | 50.84 | 30.51 | 41.97 | 13.26 | 41.99 | 34.35 | 58.15 | 19.34 | 56.77 | 42.35 | 40.18 | 8.88 | 39.48 | 27.72 | 41.86 | 10.08 | 36.41 |
| Number of days of payables | days | 36.51 | 38.92 | 31.57 | 42.22 | 25.36 | 34.18 | 32.82 | 31.58 | 29.21 | 36.58 | 36.13 | 60.71 | 50.77 | 64.42 | 36.41 | 28.43 | 28.01 | 26.45 | 35.20 | 34.95 |
| Cash conversion cycle | days | -6.99 | 3.43 | -18.84 | 8.62 | 5.15 | 7.80 | -19.56 | 10.41 | 5.14 | 21.57 | -16.79 | -3.94 | -8.41 | -24.24 | -27.52 | 11.05 | -0.28 | 15.41 | -25.13 | 1.46 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 29.52 – 36.51
= -6.99
The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle generally indicates more efficient management of working capital.
Analyzing the data provided for Grand Canyon Education Inc from March 31, 2020, to December 31, 2024, we observe fluctuations in the cash conversion cycle. The company's cash conversion cycle started at 1.46 days on March 31, 2020, indicating a swift conversion of resources into cash.
Subsequently, the cycle turned negative on several occasions, suggesting that the company was able to collect cash before paying its own obligations. Negative figures, such as -25.13 days on June 30, 2020, and -27.52 days on June 30, 2021, indicate a favorable financial position in terms of working capital efficiency.
However, the cycle turned positive again in some periods, such as 21.57 days on September 30, 2022, and 10.41 days on March 31, 2023, suggesting longer periods required to convert investments into cash.
Overall, Grand Canyon Education Inc experienced fluctuations in its cash conversion cycle over the analyzed period, with both positive and negative values. It is important for the company to closely monitor and manage its working capital to ensure efficient operations and optimize cash flow generation.
Peer comparison
Dec 31, 2024