Perdoceo Education Corp (PRDO)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	654,964	575,119	554,453	467,061	360,385
Total current liabilities	US$ in thousands	111,039	163,381	140,244	103,815	103,813
Current ratio		5.90	3.52	3.95	4.50	3.47

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $654,964K ÷ $111,039K
= 5.90

The current ratio of Perdoceo Education Corporation has shown a fluctuating trend over the past five years. As of December 31, 2023, the current ratio stands at 5.90, indicating a substantial increase compared to the prior year. This suggests that the company's current assets are significantly higher than its current liabilities, which may reflect good liquidity and the ability to meet short-term obligations comfortably.

In the previous years, the current ratio ranged between 3.47 and 4.50, showing a relatively stable liquidity position, although with some variability. The peak ratio in 2020 was 4.50, signaling a strong ability to cover short-term liabilities with current assets. However, the ratio dropped in 2021 and 2022 before rebounding to 3.52 and 3.95, respectively.

The current ratio of 5.90 in 2023 may indicate that the company has improved its liquidity position significantly. It is important for investors and stakeholders to monitor this ratio over time to assess the company's ability to manage its short-term financial obligations effectively and ensure ongoing operational stability.