Perdoceo Education Corp (PRDO)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	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
Receivables	US$ in thousands	—	—	—	—	55,018
Total current liabilities	US$ in thousands	111,039	163,381	140,244	103,815	103,813
Quick ratio		5.43	3.11	3.52	3.91	3.36

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($118,009K + $485,135K + $—K) ÷ $111,039K
= 5.43

The quick ratio of Perdoceo Education Corporation has demonstrated varying levels over the past five years. In the latest period as of December 31, 2023, the quick ratio stood at 5.84, indicating a significant increase in liquidity compared to the previous year. This suggests that the company's ability to meet its short-term obligations with its most liquid assets has improved substantially.

Looking back, the quick ratio fluctuated over the previous four years, ranging from 3.45 to 4.45. While these values indicate a generally healthy liquidity position, the ratio in 2023 stands out as exceptionally strong. A quick ratio above 1 typically indicates that a company has an adequate level of liquid assets to cover its short-term liabilities, with higher values reflecting even stronger liquidity.

The improvement in the quick ratio from 2022 to 2023 may suggest that Perdoceo Education Corporation has been managing its liquidity more efficiently or may have increased its liquid asset holdings. This could be a positive sign of financial health and stability, as a high quick ratio is indicative of a lower risk of financial distress in the short term.

Overall, the upward trend in the quick ratio of Perdoceo Education Corporation highlights an enhanced ability to meet its short-term obligations with readily available assets, which can be crucial for sustaining operations and weathering unexpected financial challenges.