Perdoceo Education Corp (PRDO)

Short-term

Turnover ratios

Perdoceo Education Corp's Inventory Turnover has fluctuated over the years, decreasing from 187.53 in 2020 to 35.67 in 2024. This indicates that the company is selling its inventory at a slower rate in recent years.

The Receivables Turnover ratio has not been provided for any of the years, which makes it hard to assess how efficiently the company is collecting payments from its customers.

Similarly, the Payables Turnover ratio is missing for all years, so it is unclear how quickly Perdoceo Education Corp is paying its suppliers.

The Working Capital Turnover ratio has remained relatively stable, albeit slightly decreasing from 1.89 in 2020 to 1.34 in 2024. This suggests that the company generates revenue efficiently relative to its working capital.

Overall, it appears that Perdoceo Education Corp may need to focus on improving its inventory turnover rate and should consider providing data for receivables and payables turnover to gain a more comprehensive understanding of its activity ratios.

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Average number of days

Perdoceo Education Corp's activity ratios indicate trends in how efficiently the company manages its inventory and accounts receivable.

1. Days of Inventory on Hand (DOH):
- Perdoceo Education Corp's DOH has shown an increasing trend over the years, from 1.95 days in 2020 to 10.23 days in 2024.
- A higher DOH suggests that inventory is taking longer to sell, which could tie up working capital and increase the risk of obsolescence. This increase warrants further investigation into inventory management practices to optimize efficiency and reduce carrying costs.

2. Days of Sales Outstanding (DSO):
- Data for DSO is not available, indicating that the company's accounts receivable turnover and collection period are not disclosed in the provided information.
- DSO is a crucial metric for assessing how well a company manages credit and collections. Without this data, it is challenging to evaluate the efficiency of Perdoceo's credit policies and cash flow from customers.

3. Number of Days of Payables:
- Similar to DSO, information on the number of days of payables is not provided, which would indicate how long it takes the company to pay its suppliers.
- Monitoring this metric is crucial for understanding Perdoceo's relationships with vendors and its cash flow management through the timing of payments.

In summary, while the increasing trend in DOH raises concerns about inventory management efficiency, the lack of data on DSO and payables days limits a comprehensive assessment of Perdoceo Education Corp's overall activity and working capital management. Additional information on accounts receivable and payables turnover would provide valuable insights into the company's liquidity and operational effectiveness.

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Long-term

The fixed asset turnover ratio for Perdoceo Education Corp has exhibited a generally positive trend over the five-year period from 2020 to 2024. The ratio started at 24.76 in 2020, slightly decreased to 24.44 in 2021, then showed an increase to 26.70 in 2022. However, data for 2023 and 2024 are unavailable (denoted by "—"), potentially suggesting a lack of fixed asset turnover information for those years.

The fixed asset turnover ratio indicates the efficiency with which the company generates sales from its investment in fixed assets. A higher ratio typically indicates that the company is utilizing its fixed assets effectively to generate revenue.

On the other hand, the total asset turnover ratio for Perdoceo Education Corp has shown a declining trend over the same five-year period. The ratio was 0.95 in 2020, decreased to 0.82 in 2021, further dropped to 0.73 in 2022, and declined to 0.70 in 2023, then to 0.55 in 2024.

The total asset turnover ratio reflects how efficiently a company is utilizing its total assets to generate sales. A decreasing total asset turnover ratio could indicate that the company is becoming less efficient in generating revenue compared to its asset base.

Overall, while the fixed asset turnover ratio presented a mixed trend with potential efficiency gains in earlier years, the declining trend in the total asset turnover ratio may suggest a decreasing efficiency in utilizing total assets to generate sales. Further analysis and comparison with industry benchmarks would provide additional insights into Perdoceo Education Corp's long-term activity performance.