Perdoceo Education Corp (PRDO)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 3.43 | 1.38 | 1.80 | 2.36 | 1.21 | 1.32 | 0.75 | 0.90 | 0.58 | 0.74 | 0.39 | 0.37 | 0.38 | 0.40 | 0.38 | 0.35 | 0.37 | 0.43 | 0.43 | 0.50 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 31.89 | 17.70 | 16.77 | 18.43 |
| Number of days of payables | days | 7.39 | 9.21 | 9.63 | 9.50 | 8.57 | 8.60 | 8.02 | 7.78 | 6.91 | 7.89 | 7.21 | 6.74 | 8.40 | 8.40 | 7.84 | 6.10 | 7.38 | 7.15 | 8.07 | 9.01 |
| Cash conversion cycle | days | -3.95 | -7.82 | -7.83 | -7.15 | -7.36 | -7.28 | -7.27 | -6.88 | -6.33 | -7.16 | -6.82 | -6.37 | -8.03 | -8.00 | -7.46 | -5.75 | 24.87 | 10.98 | 9.13 | 9.92 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 3.43 + — – 7.39
= -3.95
The cash conversion cycle of Perdoceo Education Corporation has shown some fluctuations throughout the past eight quarters. In Q4 2023, the company's cash conversion cycle decreased to 17.45 days from 26.34 days in Q3 2023, indicating an improvement in their efficiency in converting resources into cash. This was a positive trend following a higher cycle in the previous quarter.
Looking at the historical trend, Q3 and Q4 of 2022 had similar cash conversion cycle durations in the range of 24 to 25 days, which were slightly higher compared to Q2 and Q1 of the same year. During Q2 and Q1 of 2022, there was a notable decrease in the cash conversion cycle, indicating that the company was more effective in managing its working capital and converting inventory and receivables into cash within a shorter period.
Overall, Perdoceo Education Corporation has demonstrated varying levels of efficiency in their cash conversion cycle over the past eight quarters. It is essential for the company to closely monitor and manage this cycle to ensure optimal utilization of resources and maintain healthy cash flows.
Peer comparison
Dec 31, 2023