Perdoceo Education Corp (PRDO)

Short-term

Turnover ratios

Perdoceo Education Corp's inventory turnover ratio has shown fluctuating trends over the quarters, ranging from a high of 191.63 in March 2021 to a low of 26.04 in December 2023. The ratio measures how efficiently the company manages its inventory by indicating how many times inventory is sold and replaced during a specific period. A higher turnover ratio generally suggests efficient inventory management, while a decreasing trend in the ratio could indicate overstocking or slowing sales.

The receivables turnover ratio, which reflects how effectively the company collects its receivables, was not provided in the data. This ratio could have provided insights into the company's credit policies and how quickly it converts credit sales into cash.

Similarly, the payables turnover ratio, which was also not provided in the data, would have offered insights into how quickly the company pays its suppliers. A higher payables turnover ratio typically indicates that the company is efficiently managing its payables.

The working capital turnover ratio for Perdoceo Education Corp declined from 2.67 in March 2020 to 1.34 in December 2024. This ratio measures how efficiently the company generates revenue relative to its working capital. A decreasing trend in this ratio may indicate a slowdown in revenue generation compared to the capital invested in the business.

Overall, analyzing activity ratios like inventory turnover and working capital turnover provides valuable insights into how effectively Perdoceo Education Corp is managing its assets and operations to generate revenue.

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Average number of days

Perdoceo Education Corp's activity ratios show fluctuations over the quarters, indicating changes in its operational efficiency.

The Days of Inventory on Hand (DOH) ratio, which measures how quickly inventory is sold, has increased steadily from 1.97 days on March 31, 2020, to 10.23 days on December 31, 2024. A higher DOH suggests inventory is taking longer to sell, which could indicate either overstocking or slowing sales.

The Days of Sales Outstanding (DSO) ratio, which reflects how efficiently receivables are collected, was not provided in the data, possibly due to the nature of Perdoceo's business or the company's payment terms.

The Number of Days of Payables ratio, which shows how long it takes the company to pay its creditors, was also not available. This ratio is vital as extending payment periods can provide a company with more cash flow flexibility but may strain relationships with suppliers if stretched too far.

In conclusion, analyzing Perdoceo Education Corp's activity ratios can provide insights into its inventory management, receivables collection, and payment practices, ultimately affecting its operational efficiency and financial health.

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Long-term

The Fixed Asset Turnover ratio of Perdoceo Education Corp has shown significant fluctuations over the period under review. The ratio increased from 22.61 in March 2020 to a peak of 27.49 in March 2023 before declining to 15.34 in June 2023. Subsequently, the data for the latter half of 2023 and onwards is unavailable (represented by "- - - "), so we cannot provide a complete trend analysis for the year 2024.

On the other hand, the Total Asset Turnover ratio has been decreasing gradually from 1.06 in March 2020 to 0.55 in December 2024, reflecting a declining trend in the efficiency of generating sales revenue relative to the total assets held by the company.

In conclusion, despite fluctuations in the Fixed Asset Turnover ratio, the Total Asset Turnover ratio indicates a declining trend in the company's efficiency in generating revenue from its total assets over the period analyzed.