Perdoceo Education Corp (PRDO)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	732,186	695,895	693,473	689,494	631,716
Total current assets	US$ in thousands	654,964	575,119	554,453	467,061	360,385
Total current liabilities	US$ in thousands	111,039	163,381	140,244	103,815	103,813
Working capital turnover		1.35	1.69	1.67	1.90	2.46

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $732,186K ÷ ($654,964K – $111,039K)
= 1.35

The working capital turnover ratio for Perdoceo Education Corporation has shown a declining trend over the past five years. The ratio decreased from 2.45 in 2019 to 1.31 in 2023. This indicates that the company is generating less revenue relative to its working capital. A lower working capital turnover ratio may suggest inefficiencies in managing working capital or a slowdown in revenue generation compared to the investment in working capital. Further analysis of the company's operational and financial performance is recommended to understand the underlying reasons for the decreasing trend in working capital turnover.