Perdoceo Education Corp (PRDO)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 700,678 | 118,009 | 109,408 | 319,982 | 105,684 |
| Short-term investments | US$ in thousands | 459,795 | 485,135 | 399,315 | 174,213 | 300,676 |
| Total current liabilities | US$ in thousands | 132,162 | 111,039 | 163,381 | 140,244 | 103,815 |
| Cash ratio | 8.78 | 5.43 | 3.11 | 3.52 | 3.91 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($700,678K
+ $459,795K)
÷ $132,162K
= 8.78
The cash ratio, which measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, has shown a generally positive trend for Perdoceo Education Corp over the years 2020 to 2024.
As of December 31, 2020, the company's cash ratio was 3.91, indicating that it had $3.91 in cash and cash equivalents for every $1 of short-term liabilities. This ratio decreased slightly to 3.52 by December 31, 2021, but remained at a healthy level.
Subsequently, the cash ratio decreased further to 3.11 by December 31, 2022, suggesting a potential decrease in the company's liquidity compared to the previous years. However, the ratio showed a significant improvement by December 31, 2023, with a value of 5.43, indicating a stronger ability to cover short-term obligations with cash on hand.
By December 31, 2024, Perdoceo Education Corp's cash ratio had increased substantially to 8.78, signifying a significant improvement in liquidity and a robust ability to meet short-term liabilities with readily available cash and cash equivalents.
Overall, the trend of increasing cash ratio from 2020 to 2024 indicates an improvement in the company's liquidity position and its ability to manage short-term financial obligations effectively.
Peer comparison
Dec 31, 2024