Grand Canyon Education Inc (LOPE)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	324,623	263,584	241,317	196,208	146,475	56,871	142,925	105,040	120,409	39,887	139,401	201,933	600,941	61,002	69,448	225,829	245,769	166,950	172,532	132,493
Short-term investments	US$ in thousands	—	—	100,498	94,485	98,031	97,553	90,444	89,483	61,295	68,403	63,867	62,396	—	—	3,006	8,015	10,840	12,812	14,691	17,049
Total current liabilities	US$ in thousands	110,966	106,551	107,467	160,126	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
Cash ratio		2.93	2.47	3.18	1.82	2.52	1.55	2.32	1.63	1.82	1.13	1.96	1.99	6.14	0.30	0.43	1.53	2.16	1.47	1.24	1.12

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($324,623K + $—K) ÷ $110,966K
= 2.93

Grand Canyon Education Inc's cash ratio provides insight into the company's ability to cover its short-term liabilities using its cash and cash equivalents. The trend analysis of the cash ratio from March 31, 2020, to December 31, 2024, shows fluctuations in the company's liquidity position over the period.

The cash ratio increased from 1.12 on March 31, 2020, to a peak of 6.14 on December 31, 2021. This significant increase indicates a substantial improvement in the company's ability to meet its short-term obligations solely with its cash holdings. However, the ratio experienced a sharp decline to 0.30 on September 30, 2021, and further dropped to 0.43 on June 30, 2021. These lower ratios suggest potential liquidity concerns during those periods.

Subsequently, the cash ratio recovered, reaching 3.18 on June 30, 2024, indicating a healthier liquidity position for Grand Canyon Education Inc. The company maintained its cash ratio above 1.0 from March 31, 2020, to December 31, 2024, except for the temporary dips in mid-2021.

Overall, fluctuations in the cash ratio highlight the importance of monitoring a company's liquidity position closely, as it can impact its ability to meet short-term obligations and financial flexibility.