Grand Canyon Education Inc (LOPE)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	146,475	120,409	600,941	245,769	122,272
Short-term investments	US$ in thousands	98,031	61,295	—	10,840	21,601
Total current liabilities	US$ in thousands	97,033	99,706	97,944	118,718	95,230
Cash ratio		2.52	1.82	6.14	2.16	1.51

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($146,475K + $98,031K) ÷ $97,033K
= 2.52

The cash ratio of Grand Canyon Education Inc has shown fluctuation over the past five years, ranging from 1.60 to 6.23. A higher cash ratio indicates a higher level of liquidity and ability to cover short-term obligations solely with cash and cash equivalents.

In 2021, the company had a notably high cash ratio of 6.23, suggesting a strong ability to meet its short-term liabilities. This could be due to a significant increase in cash reserves or a decrease in current liabilities during that year.

The cash ratio decreased to 2.23 in 2020 and further dropped to 1.94 in 2022. These declines may signify a reduction in available cash or an increase in short-term liabilities during those years, potentially impacting the company's liquidity position.

However, in 2023, the cash ratio improved to 2.65, indicating a better liquidity position compared to the previous year. This increase may be attributed to higher cash reserves or a decrease in short-term obligations, enhancing the company's ability to cover its immediate financial commitments.

Overall, while the cash ratio of Grand Canyon Education Inc has displayed variability, it is crucial to assess other liquidity measures and financial indicators in conjunction with the cash ratio to gain a comprehensive understanding of the company's overall liquidity and financial health.