Perdoceo Education Corp (PRDO)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 120,860 | 130,324 | 116,723 | 108,743 | 111,768 |
| Inventory | US$ in thousands | 3,388 | 5,004 | 1,904 | 904 | 596 |
| Inventory turnover | 35.67 | 26.04 | 61.30 | 120.29 | 187.53 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $120,860K ÷ $3,388K
= 35.67
The inventory turnover ratio for Perdoceo Education Corp has shown a significant decline over the years, indicating changes in the company's efficiency in managing its inventory. Starting at a high of 187.53 in December 31, 2020, the ratio has gradually decreased to 120.29 in December 31, 2021, and further to 61.30 in December 31, 2022. The substantial drop to 26.04 by December 31, 2023, suggests a decreased frequency of inventory turnover within the company. However, there was a slight improvement as the ratio increased to 35.67 by December 31, 2024.
An inventory turnover ratio reflects how quickly a company sells its inventory during a period. The decreasing trend seen in Perdoceo Education Corp's inventory turnover may indicate potential issues such as overstocking, slow-moving inventory, or inefficiencies in sales and production processes. It is essential for the company to address these issues to optimize its inventory management and improve operational efficiency.
Peer comparison
Dec 31, 2024