Perdoceo Education Corp (PRDO)

Short-term

Turnover ratios

Perdoceo Education Corporation's activity ratios reveal insights into the efficiency of the company's operations over the past five years.

- Inventory Turnover: The company's inventory turnover ratio has been consistently reported as 0.00 across all years. This indicates that the company has effectively managed its inventory levels, potentially by adopting a just-in-time inventory system or offering virtual services that do not require physical inventory.

- Receivables Turnover: Perdoceo Education Corporation's receivables turnover has shown a positive trend, increasing from 11.13 in 2019 to 20.92 in 2023. This signifies that the company has been successful in collecting its accounts receivable more frequently each year, indicating strong credit management and efficient collection practices.

- Payables Turnover: The payables turnover ratio is reported as 0.00 for all years, suggesting that the company may not have significant accounts payable obligations or that its payment terms with suppliers are favorable, allowing for extended payment periods.

- Working Capital Turnover: The working capital turnover ratio has declined over the years, from 2.45 in 2019 to 1.31 in 2023. This indicates that the company's efficiency in generating revenue from its working capital has decreased, potentially due to changes in business operations or financing strategies.

Overall, the analysis of Perdoceo Education Corporation's activity ratios suggests that the company has effectively managed its inventory and accounts receivable, but may need to assess its working capital efficiency to improve its revenue generation from available resources.

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Average number of days

Days of Sales Outstanding (DSO) measures how long it takes for Perdoceo Education Corporation to collect revenue after making a sale. A lower DSO is generally preferred as it indicates faster collection of cash from customers.

Over the past five years, DSO has shown a declining trend, decreasing from 32.8 days in 2019 to 17.45 days in 2023. This improvement suggests that Perdoceo has become more efficient in collecting outstanding receivables, which could positively impact cash flow and liquidity.

However, the company's DSO is still relatively low compared to industry benchmarks, indicating that there may be further room for improvement in managing accounts receivables.

Days of Inventory on Hand (DOH) is not provided in the data table, which makes it impossible to analyze Perdoceo's efficiency in managing inventory levels and turnover.

Number of Days of Payables is also not available in the data table, limiting our ability to assess how long it takes for Perdoceo to pay its suppliers and manage its working capital effectively.

In conclusion, Perdoceo Education Corporation has shown improvement in its Days of Sales Outstanding over the past five years, indicating better efficiency in collecting revenue. However, without data on Days of Inventory on Hand and Number of Days of Payables, a comprehensive analysis of the company's activity ratios in managing inventory and accounts payable is not feasible.

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Long-term

The long-term activity ratios of Perdoceo Education Corporation indicate how efficiently the company is utilizing its long-term assets to generate sales revenue.

The fixed asset turnover ratio has been steadily increasing over the years, reaching a high of 33.22 in 2023. This indicates that the company is generating $33.22 in sales for every dollar invested in fixed assets. The consistently high fixed asset turnover ratio suggests that Perdoceo Education Corporation is effectively utilizing its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has been declining over the years, decreasing from 1.05 in 2019 to 0.70 in 2023. This indicates that the company is generating $0.70 in sales for every dollar invested in total assets. The declining total asset turnover ratio suggests that Perdoceo Education Corporation may not be efficiently utilizing its total assets to generate revenue.

Overall, the company's strong performance in terms of fixed asset turnover highlights its efficiency in utilizing its fixed assets to drive sales. However, the declining trend in total asset turnover raises concerns about the company's overall asset management efficiency and may warrant further analysis and attention.