Perdoceo Education Corp (PRDO)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 118,009 | 109,408 | 319,982 | 105,684 | 108,687 |
| Short-term investments | US$ in thousands | 485,135 | 399,315 | 174,213 | 300,676 | 185,488 |
| Total current liabilities | US$ in thousands | 111,039 | 163,381 | 140,244 | 103,815 | 103,813 |
| Cash ratio | 5.43 | 3.11 | 3.52 | 3.91 | 2.83 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($118,009K
+ $485,135K)
÷ $111,039K
= 5.43
The cash ratio measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. Perdoceo Education Corporation's cash ratio has been consistently improving over the past five years, indicating a stronger liquidity position.
Starting at 2.92 in 2019, the cash ratio increased to 4.00 in 2020, further rose to 3.59 in 2021, then to 3.17 in 2022, and reached its highest level at 5.54 in 2023. This upward trend suggests that the company has been effectively managing its cash resources relative to its short-term obligations.
A cash ratio above 1 indicates the company can cover its current liabilities with cash on hand. Perdoceo Education Corporation's ratios for the past five years have consistently been well above 1, indicating a healthy liquidity position. The significant increase in the cash ratio from 2019 to 2023 reflects the company's improved ability to meet its short-term financial obligations using its cash reserves.
Peer comparison
Dec 31, 2023