Perdoceo Education Corp (PRDO)

Total asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	681,263	710,004	695,208	693,034	687,314
Total assets	US$ in thousands	1,237,030	1,007,320	957,368	847,433	721,517
Total asset turnover		0.55	0.70	0.73	0.82	0.95

December 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $681,263K ÷ $1,237,030K
= 0.55

Perdoceo Education Corp's total asset turnover has experienced a downward trend over the past five years. Starting at 0.95 in December 31, 2020, it decreased to 0.82 in December 31, 2021, and continued to decline to 0.73 in December 31, 2022. Further reduction was seen in the subsequent years, with the ratio dropping to 0.70 in December 31, 2023, and reaching the lowest point at 0.55 by December 31, 2024.

A declining total asset turnover ratio indicates a decreasing ability of the company to generate revenue relative to its total assets. This could be a signal of inefficiency in asset utilization, such as underutilization of assets or declining sales compared to the size of the asset base. It may also suggest challenges in managing and leveraging the company's assets effectively to drive revenue growth.

Investors and analysts closely monitor total asset turnover as it provides insights into the company's operational efficiency and how effectively management is utilizing its assets to generate sales. A declining trend in total asset turnover warrants further investigation and analysis to identify underlying factors contributing to this decrease and to assess the company's overall financial health.