Perdoceo Education Corp (PRDO)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 5.90 | 4.81 | 4.00 | 4.33 | 3.52 | 4.15 | 5.19 | 5.04 | 3.95 | 4.00 | 4.66 | 4.90 | 4.50 | 4.23 | 3.57 | 3.60 | 3.47 | 2.67 | 2.50 | 3.05 |
| Quick ratio | 5.43 | 4.27 | 3.54 | 3.78 | 3.11 | 3.72 | 4.68 | 4.51 | 3.52 | 3.54 | 4.05 | 4.33 | 3.91 | 3.69 | 3.10 | 3.05 | 3.36 | 2.36 | 2.40 | 2.91 |
| Cash ratio | 5.43 | 4.27 | 3.54 | 3.78 | 3.11 | 3.72 | 4.68 | 4.51 | 3.52 | 3.54 | 4.05 | 4.33 | 3.91 | 3.69 | 3.10 | 3.05 | 2.83 | 2.13 | 2.18 | 2.59 |
Perdoceo Education Corporation has shown consistently strong liquidity ratios over the past eight quarters as demonstrated by its current, quick, and cash ratios.
The current ratio measures the company's ability to cover its short-term obligations with its current assets. Perdoceo's current ratio has generally been above 4, indicating a healthy level of liquidity. It reached its highest point in Q4 2023 at 5.90, reflecting a significant increase from the previous quarter.
The quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, also reflects Perdoceo's strong liquidity position. The company has consistently maintained quick ratios above 3, with the highest value recorded in Q4 2023 at 5.84.
Similarly, the cash ratio, which specifically focuses on the company's ability to cover its current liabilities with cash and cash equivalents, has also been robust for Perdoceo. The company's cash ratio has consistently remained above 3, with the highest value seen in Q4 2023 at 5.54.
Overall, Perdoceo Education Corporation's liquidity ratios demonstrate a strong ability to meet its short-term obligations with liquid assets, providing a favorable indication of its financial health and ability to weather potential financial challenges.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle for Perdoceo Education Corporation has shown some fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 17.45 days, indicating that the company took approximately 17.45 days to convert its investments in inventory and other resources into cash receipts from sales. This represents an improvement from Q3 2023 when the cash conversion cycle was 26.34 days.
Looking at the trend over the quarters, there seems to be some seasonality as the cash conversion cycle tends to increase in the third quarter and decrease in the fourth quarter. However, the company experienced a longer cash conversion cycle in Q3 and Q2 of 2022 compared to the more recent quarters.
Overall, the company appears to have been more efficient in managing its working capital in the most recent quarter, as evidenced by the lower cash conversion cycle. This may indicate improvements in inventory management and accounts receivable collection processes. Monitoring and managing the cash conversion cycle effectively is crucial for maintaining liquidity and optimizing the company's cash flow position.