Perdoceo Education Corp (PRDO)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 10.23 | 14.01 | 5.95 | 3.03 | 1.95 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 10.23 | 14.01 | 5.95 | 3.03 | 1.95 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 10.23 + — – —
= 10.23
The cash conversion cycle of Perdoceo Education Corp has shown an increasing trend over the years, rising from 1.95 days as of December 31, 2020, to 10.23 days as of December 31, 2024. This indicates that the company is taking longer to convert its investments in inventory and accounts receivable into cash.
The significant increase in the cash conversion cycle from 2020 to 2024 suggests potential challenges in managing working capital efficiently, which may impact the company's liquidity and cash flow. It is essential for the company to analyze the reasons behind this trend and implement strategies to shorten the cash conversion cycle to ensure optimal cash flow management and financial performance.
Peer comparison
Dec 31, 2024