Grand Canyon Education Inc (LOPE)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	419,976	337,522	273,273	681,045	333,742
Total current liabilities	US$ in thousands	110,966	97,033	99,706	97,944	118,718
Current ratio		3.78	3.48	2.74	6.95	2.81

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $419,976K ÷ $110,966K
= 3.78

The current ratio of Grand Canyon Education Inc has shown fluctuations over the past five years. As of December 31, 2020, the current ratio was 2.81, indicating that the company had $2.81 in current assets to cover each dollar of current liabilities. The ratio increased significantly to 6.95 by December 31, 2021, reflecting a stronger liquidity position.

However, there was a decrease in the current ratio to 2.74 by December 31, 2022, suggesting a relatively lower ability to meet short-term obligations. The ratio improved to 3.48 by December 31, 2023, indicating a better liquidity position than the previous year. By December 31, 2024, the current ratio further increased to 3.78, which signifies an improvement in the company's ability to cover its short-term liabilities with current assets.

Overall, the current ratio of Grand Canyon Education Inc has demonstrated variability over the years, with notable improvements and slight declines. It is important for stakeholders to monitor this ratio to assess the company's liquidity position and its ability to manage short-term financial obligations effectively.