Grand Canyon Education Inc (LOPE)

Quick ratio

		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	US$ in thousands	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	122,272	119,709	65,801	88,467
Short-term investments	US$ in thousands	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	21,601	14,152	14,205	14,243
Receivables	US$ in thousands	80,315	108,245	33,719	105,535	85,761	104,759	34,694	102,006	75,179	96,910	21,218	92,553	63,777	93,192	22,238	79,075	51,243	86,936	17,083	78,076
Total current liabilities	US$ in thousands	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	95,230	124,016	113,266	126,002
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

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 exhibited fluctuations over the past eight quarters, ranging from a low of 2.34 in Q3 2022 to a high of 3.48 in Q4 2023. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

The trend demonstrates that the company has generally maintained a healthy level of liquidity, with the quick ratio consistently above 1. A ratio above 1 indicates that the company can cover its current liabilities with its quick assets, suggesting a strong ability to meet short-term financial obligations.

The significant increase in the quick ratio in Q4 2023 to 3.48 could indicate improved liquidity and efficient management of working capital during that period. However, it is important to note that a very high quick ratio may also suggest that the company is not efficiently utilizing its liquid assets to generate revenue or growth opportunities.

Overall, Grand Canyon Education Inc's quick ratio trend shows a generally positive liquidity position, which signifies the company's ability to comfortably meet its short-term obligations using liquid assets.