Perdoceo Education Corp (PRDO)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Revenue (ttm)	US$ in thousands	681,263	652,751	662,846	682,670	710,004	738,230	726,727	707,847	695,208	678,922	684,500	692,355	693,034	704,334	699,462	699,958	687,314	674,606	660,439	640,845
Total current assets	US$ in thousands	640,154	773,524	732,481	706,023	654,964	669,590	643,394	585,445	575,119	582,315	571,794	556,203	554,453	537,144	549,145	506,053	467,061	416,854	394,061	332,293
Total current liabilities	US$ in thousands	132,162	141,167	134,858	142,508	111,039	139,244	160,695	135,139	163,381	140,404	110,198	110,347	140,244	134,411	117,772	103,219	103,815	98,495	110,430	92,289
Working capital turnover		1.34	1.03	1.11	1.21	1.31	1.39	1.51	1.57	1.69	1.54	1.48	1.55	1.67	1.75	1.62	1.74	1.89	2.12	2.33	2.67

December 31, 2024 calculation

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

Perdoceo Education Corp's working capital turnover has been gradually decreasing over the past few years based on the provided data. The ratio indicates how efficiently the company is utilizing its working capital to generate revenue. A higher turnover ratio suggests more effective utilization of working capital.

From March 31, 2020, to December 31, 2024, the working capital turnover ratio decreased from 2.67 to 1.34. This downward trend indicates a potential decline in the efficiency of Perdoceo Education Corp in using its working capital to support its operations and generate sales.

The decreasing trend in the working capital turnover may signal that the company's current assets are not being managed as effectively as before in generating revenue. It could indicate issues with inventory management, accounts receivable collection, or inefficient allocation of resources which may need to be addressed for improved financial performance in the future.