Perdoceo Education Corp (PRDO)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	710,100	738,611	727,380	708,577	695,895	679,743	684,837	692,577	693,473	704,470	700,359	701,320	689,033	676,325	662,738	643,733	629,803	616,857	606,556	591,042
Property, plant and equipment	US$ in thousands	21,371	23,530	24,257	25,752	26,038	26,290	26,952	27,956	28,355	25,838	24,807	25,696	27,761	28,808	28,335	28,349	26,006	26,698	27,507	28,397
Fixed asset turnover		33.23	31.39	29.99	27.52	26.73	25.86	25.41	24.77	24.46	27.26	28.23	27.29	24.82	23.48	23.39	22.71	24.22	23.10	22.05	20.81

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $710,100K ÷ $21,371K
= 33.23

The fixed asset turnover ratio for Perdoceo Education Corporation has shown a consistent positive trend over the past eight quarters, indicating the company's ability to efficiently generate revenue from its fixed assets. The ratio has steadily increased from 24.77 in Q1 2022 to 33.22 in Q4 2023, reflecting an improvement in the company's asset utilization efficiency.

A high fixed asset turnover ratio signifies that Perdoceo Education Corporation is effectively using its fixed assets to generate sales revenue. This efficiency improvement can be attributed to factors such as operational improvements, better asset management, or increased sales volume without proportionate increases in fixed asset investments.

Overall, the upward trend in the fixed asset turnover ratio suggests that Perdoceo Education Corporation is effectively leveraging its fixed assets to drive revenue growth, which is a positive signal for the company's operational performance and overall financial health.