Perdoceo Education Corp (PRDO)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 10.23 | 12.19 | 13.46 | 12.28 | 14.01 | 6.07 | 8.20 | 11.22 | 5.95 | 6.72 | 4.00 | 4.75 | 3.03 | 3.84 | 1.99 | 1.90 | 1.95 | 2.08 | 1.97 | 1.97 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 10.23 | 12.19 | 13.46 | 12.28 | 14.01 | 6.07 | 8.20 | 11.22 | 5.95 | 6.72 | 4.00 | 4.75 | 3.03 | 3.84 | 1.99 | 1.90 | 1.95 | 2.08 | 1.97 | 1.97 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 10.23 + — – —
= 10.23
Perdoceo Education Corp's cash conversion cycle, which represents the time it takes for the company to convert its investments in inventory and other resources into cash inflows, has exhibited fluctuations over the periods specified in the data.
From March 31, 2020, to June 30, 2021, the company maintained a relatively stable cash conversion cycle ranging between approximately 1.90 to 2.08 days, indicating effective management of inventory and receivables to generate cash.
However, a significant increase in the cash conversion cycle was observed in the later periods, particularly from March 31, 2022, onwards. This increase suggests a lengthening period for Perdoceo Education Corp to convert its investments into cash, potentially indicating challenges in managing inventory levels or delays in collecting receivables.
The sharp rise in the cash conversion cycle between March 31, 2023, and December 31, 2024, reaching a peak of 14.01 days, followed by a gradual decline, signals a need for the company to focus on optimizing its working capital management practices to enhance liquidity and operational efficiency.
Overall, monitoring and improving the cash conversion cycle can help Perdoceo Education Corp enhance its cash flow and overall financial performance in the future.
Peer comparison
Dec 31, 2024