Perdoceo Education Corp (PRDO)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	710,100	738,611	727,380	708,577	695,895	679,743	684,837	692,577	693,473	704,470	700,359	701,320	689,033	676,325	662,738	643,733	629,803	616,857	606,556	591,042
Total current assets	US$ in thousands	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	360,385	353,025	320,940	282,181
Total current liabilities	US$ in thousands	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	103,813	132,140	128,482	92,621
Working capital turnover		1.31	1.39	1.51	1.57	1.69	1.54	1.48	1.55	1.67	1.75	1.62	1.74	1.90	2.12	2.34	2.68	2.45	2.79	3.15	3.12

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $710,100K ÷ ($654,964K – $111,039K)
= 1.31

Perdoceo Education Corporation's working capital turnover has shown a declining trend over the past eight quarters, indicating a decreasing efficiency in generating revenue relative to its working capital. The company's working capital turnover ratio has decreased from 1.69 in Q4 2022 to 1.31 in Q4 2023. This suggests that Perdoceo Education Corporation is taking longer to convert its working capital into sales in the most recent quarter.

A working capital turnover ratio below 1.0 generally indicates inefficiency in utilizing working capital to generate revenue. While Perdoceo Education Corporation's ratios have been above 1.0 for the periods reported, the declining trend is a cause for concern as it may signify potential liquidity issues or inefficiencies in managing working capital.

Further analysis and comparison with industry benchmarks or competitors' performance would provide additional insights into Perdoceo Education Corporation's working capital management and overall operational efficiency.