Grand Canyon Education Inc (LOPE)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	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
Receivables	US$ in thousands	80,315	85,761	75,179	63,777	51,243
Total current liabilities	US$ in thousands	97,033	99,706	97,944	118,718	95,230
Quick ratio		3.35	2.68	6.90	2.70	2.05

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($146,475K + $98,031K + $80,315K) ÷ $97,033K
= 3.35

The quick ratio of Grand Canyon Education Inc has shown variability over the past five years. In 2023, the quick ratio stands at 3.48, indicating that the company has $3.48 in liquid assets available to cover each dollar of its current liabilities. This suggests a strong ability to meet short-term financial obligations using its most liquid assets.

Comparing this to previous years, the quick ratio was 2.74 in 2022, 6.95 in 2021, 2.81 in 2020, and 2.18 in 2019. The fluctuations in the quick ratio reflect changes in the company's liquidity position over time.

Overall, the trend indicates that Grand Canyon Education Inc has generally maintained a healthy level of liquidity in recent years, with the ability to cover its short-term obligations comfortably. However, it is important to monitor the quick ratio in conjunction with other financial indicators to assess the company's overall financial health effectively.