Perdoceo Education Corp (PRDO)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover		35.67	29.94	27.11	29.72	26.04	60.15	44.51	32.53	61.30	54.28	91.26	76.77	120.29	95.15	183.66	191.63	187.53	175.48	185.71	185.40
DOH	days	10.23	12.19	13.46	12.28	14.01	6.07	8.20	11.22	5.95	6.72	4.00	4.75	3.03	3.84	1.99	1.90	1.95	2.08	1.97	1.97

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 35.67
= 10.23

Perdoceo Education Corp's Days of Inventory on Hand (DOH) measures the average number of days it takes for the company to sell its inventory.

Looking at the historical trend of DOH for Perdoceo Education Corp, we can see fluctuations over the quarters. The DOH was relatively stable around 1.9 to 2.1 days from March 2020 to December 2021. However, there was a noticeable increase in DOH from September 2021 to March 2023, indicating that the company may have experienced issues with managing its inventory efficiently during this period.

The significant jump in DOH from March 2023 to December 2023, reaching 14.01 days, suggests a potential buildup of excess inventory or slower inventory turnover. This could be a concern as higher DOH may tie up working capital and lead to increased holding costs.

The DOH continued to remain elevated in the subsequent quarters, indicating that Perdoceo Education Corp may be facing challenges in optimizing its inventory levels. The company saw some improvement in DOH towards the end of 2024, but it still remained above the levels observed in earlier periods.

Overall, the trend in Perdoceo Education Corp's DOH reflects fluctuations in inventory management efficiency, with periods of both stability and challenges in inventory turnover. It would be important for the company to focus on maintaining optimal inventory levels to improve working capital utilization and operational efficiency.