Perdoceo Education Corp (PRDO)

Working capital 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 current assets US$ in thousands 640,154 654,964 575,119 554,453 467,061
Total current liabilities US$ in thousands 132,162 111,039 163,381 140,244 103,815
Working capital turnover 1.34 1.31 1.69 1.67 1.89

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $681,263K ÷ ($640,154K – $132,162K)
= 1.34

The working capital turnover ratio for Perdoceo Education Corp has shown some fluctuations over the analyzed period. The ratio decreased from 1.89 in December 31, 2020, to 1.67 in December 31, 2021, reflecting a potential decline in efficiency in utilizing its working capital to generate revenue. However, there was a slight improvement to 1.69 by December 31, 2022, before dropping significantly to 1.31 by December 31, 2023, and then recovering slightly to 1.34 by December 31, 2024.

A high working capital turnover ratio is generally desirable as it indicates that the company is efficiently utilizing its working capital to generate sales. The decreasing trend observed from 2020 to 2023 may suggest potential inefficiencies in managing working capital during that period. However, the modest improvement in 2024 could indicate some efforts to enhance working capital management efficiency.

Further analysis is recommended to understand the underlying reasons for the fluctuations in the working capital turnover ratio and to assess the effectiveness of Perdoceo Education Corp's working capital management strategies in driving operational performance.