Grand Canyon Education Inc (LOPE)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.78 | 3.69 | 3.63 | 2.78 | 3.48 | 2.76 | 2.78 | 2.64 | 2.74 | 2.34 | 2.41 | 2.87 | 6.95 | 0.85 | 0.87 | 2.45 | 2.81 | 2.38 | 1.48 | 1.87 |
| Quick ratio | 3.68 | 3.58 | 3.51 | 2.67 | 3.35 | 2.64 | 2.66 | 2.51 | 2.68 | 2.23 | 2.29 | 2.76 | 6.90 | 0.77 | 0.55 | 2.14 | 2.70 | 2.23 | 1.39 | 1.72 |
| 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 |
Grand Canyon Education Inc's liquidity ratios provide insights into the company's ability to meet its short-term financial obligations.
The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, has shown fluctuations over the years. The ratio ranged from a low of 0.85 in September 2021 to a high of 6.95 in December 2021. Generally, a current ratio above 1 indicates that the company can meet its short-term obligations. It is positive to see that the current ratio has mostly been above 2, indicating a healthy liquidity position.
The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Like the current ratio, the quick ratio has shown variability but has generally stayed above 1, reflecting the company's ability to meet short-term liabilities without relying on selling inventory.
The cash ratio, which is the most conservative liquidity ratio, measures the company's ability to cover its current liabilities with its cash and cash equivalents. Grand Canyon Education Inc's cash ratio has also fluctuated over time but has generally displayed a strong position, with ratios consistently above 1. This indicates that the company has an adequate level of cash to meet its short-term obligations.
Overall, the liquidity ratios of Grand Canyon Education Inc show a generally healthy liquidity position over the years, with the company having the ability to meet its short-term obligations using various degrees of liquid assets.
Additional liquidity measure
| 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 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 |
The cash conversion cycle of Grand Canyon Education Inc has shown fluctuations over the reported periods. A negative cash conversion cycle typically indicates efficient management of working capital.
- In the period ending June 30, 2020, the company had a significantly negative cash conversion cycle of -25.13 days, suggesting a quick conversion of resources into cash.
- However, this trend reversed in the subsequent periods as the company experienced positive cash conversion cycles, indicating a delay in converting investments in resources into cash.
- The company managed to achieve negative cash conversion cycles again in the periods ending December 31, 2020, June 30, 2021, September 30, 2021, and subsequent quarters up to September 30, 2022, indicating improved efficiency in working capital management.
- From September 30, 2022, the cash conversion cycle turned positive, reaching 21.57 days, suggesting potential delays in cash conversion from resources.
- The cycle then fluctuated, but by March 31, 2024, it stood at 8.62 days, indicating a moderate efficiency in cash conversion.
Overall, the company's performance in managing its cash conversion cycle has shown variability, reflecting changes in working capital efficiency over the reporting periods. It is essential for the company to monitor and optimize its cash conversion cycle to ensure effective utilization of resources and maintain healthy liquidity levels.