Perdoceo Education Corp (PRDO)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	120,860	115,884	121,099	126,331	130,324	131,318	127,965	122,486	116,723	110,782	106,594	107,857	108,743	112,086	113,687	113,831	111,768	108,098	105,854	102,528
Inventory	US$ in thousands	3,388	3,870	4,467	4,251	5,004	2,183	2,875	3,765	1,904	2,041	1,168	1,405	904	1,178	619	594	596	616	570	553
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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $120,860K ÷ $3,388K
= 35.67

Perdoceo Education Corp's inventory turnover ratio has displayed fluctuations over the period covered, indicating changes in the efficiency of managing its inventory. The company's inventory turnover ratio started at a high level of 185.40 in March 2020 and maintained a relatively stable range between 175.48 and 191.63 until June 2021, reflecting a quick turnover of inventory during this period.

However, there was a significant drop in the inventory turnover ratio to 95.15 in September 2021, followed by further declines to 54.28 in September 2022. This substantial decrease suggests a slowdown in inventory turnover efficiency, potentially indicating challenges in managing inventory levels effectively.

Subsequently, there was a slight improvement in the inventory turnover ratio to 61.30 by December 2022, but it remained relatively low compared to the earlier periods. The trend slightly improved with figures ranging from 32.53 to 44.51 until June 2023, indicating some recovery in managing inventory.

By September 2023, there was a notable increase in the inventory turnover ratio to 60.15, which further improved to 35.67 by December 2024. This upward trend suggests enhancements in inventory management efficiency, leading to a quicker turnover of inventory.

Overall, the analysis indicates fluctuations in Perdoceo Education Corp's inventory turnover ratio over the period, with notable declines followed by a gradual recovery in managing inventory levels efficiently. It is essential for the company to continue monitoring and enhancing its inventory management strategies to maintain optimal inventory turnover ratios in the future.