Grand Canyon Education Inc (LOPE)

Liquidity ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 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 2.19 1.92 0.96 1.57
Quick ratio 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 2.05 1.78 0.86 1.43
Cash ratio 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 1.51 1.08 0.71 0.82

Grand Canyon Education Inc's liquidity ratios show a consistent improvement over the past eight quarters. The current ratio, which indicates the company's ability to cover short-term obligations with current assets, has steadily increased from 2.74 in Q4 2022 to 3.48 in Q4 2023. This indicates that the company's current assets have been growing at a faster pace than its current liabilities.

Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown an upward trend from 2.34 in Q4 2022 to 3.48 in Q4 2023. This suggests that Grand Canyon Education Inc has a strong ability to meet immediate obligations without relying on inventory liquidation.

The cash ratio, which measures the company's ability to cover current liabilities with its cash and cash equivalents, has also improved steadily from 1.24 in Q3 2022 to 2.65 in Q4 2023. This indicates that the company has a sufficient cash position to settle its short-term obligations.

Overall, the liquidity ratios of Grand Canyon Education Inc demonstrate a healthy financial position with a strong ability to meet its short-term obligations.

Additional liquidity measure

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 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 -2.45 3.01 -28.76 9.23

The cash conversion cycle measures the efficiency with which a company manages its working capital by estimating the time taken to convert its investments in inventory into cash received from customers. A negative cash conversion cycle indicates that a company is able to generate cash from sales before paying its suppliers, which is a favorable position.

Analyzing the data for Grand Canyon Education Inc, we observe fluctuating trends in the cash conversion cycle over the past eight quarters. In Q4 2023, the company achieved a cash conversion cycle of -11.22 days, indicating an improvement compared to the previous quarter. This suggests that the company is efficiently managing its working capital and generating cash from sales faster than it pays its suppliers.

Furthermore, comparing Q4 2023 to the same quarter in the previous year (Q4 2022), we notice a significant reduction in the cash conversion cycle from -16.40 days to -11.22 days. This improvement indicates enhanced working capital management and possibly more efficient operations by Grand Canyon Education Inc.

Overall, the negative values observed in the cash conversion cycle for Grand Canyon Education Inc in recent quarters reflect a favorable position in terms of working capital management and operational efficiency. It implies that the company is effectively managing its cash flows and working capital to sustain its operations and potentially invest in growth opportunities.