Perdoceo Education Corp (PRDO)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	531,834	575,648	572,475	575,912	570,198
Payables	US$ in thousands	10,766	13,518	10,838	13,259	11,533
Payables turnover		49.40	42.58	52.82	43.44	49.44

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $531,834K ÷ $10,766K
= 49.40

The payables turnover ratio for Perdoceo Education Corporation has remained consistently at 0.00 for the past five years (Dec 31, 2019 to Dec 31, 2023). A payables turnover ratio of 0.00 indicates that the company is not effectively utilizing its accounts payable to fund its operations or that the company may not have significant payables that are being turned over during the period.

A low or zero payables turnover ratio could suggest that the company may be paying its suppliers too quickly, potentially impacting cash flow management. It may also indicate that the company has a strong bargaining position with its suppliers, allowing for longer payment terms.

Further analysis of the company's payables management practices, supplier relationships, and financial strategy would be necessary to gain a comprehensive understanding of why the payables turnover ratio is consistently at 0.00. It is important for stakeholders to monitor changes in this ratio over time to assess the company's efficiency in managing its payables and its overall financial health.