Perdoceo Education Corp (PRDO)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash 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
Receivables US$ in thousands — — — — —
Total current liabilities US$ in thousands 132,162 111,039 163,381 140,244 103,815
Quick ratio 8.78 5.43 3.11 3.52 3.91

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($700,678K + $459,795K + $—K) ÷ $132,162K
= 8.78

The quick ratio of Perdoceo Education Corp has exhibited a favorable trend over the years, indicating a strong ability to meet its short-term obligations with its liquid assets. As of December 31, 2020, the quick ratio stood at 3.91, signifying that the company had $3.91 in highly liquid assets available to cover each dollar of current liabilities.

Subsequently, as of December 31, 2021, the quick ratio decreased slightly to 3.52 but remained at a healthy level. This indicates a continued ability to cover short-term liabilities efficiently.

By December 31, 2022, the quick ratio declined further to 3.11, potentially signaling a slight reduction in the company's liquidity position compared to the previous year. However, the ratio remained above 1, indicating that the company could still meet its short-term obligations using its quick assets.

On December 31, 2023, the quick ratio significantly increased to 5.43, showing a substantial improvement in the company's liquidity position. This surge suggests that Perdoceo Education Corp had a higher proportion of liquid assets relative to its current liabilities, enhancing its ability to fulfill short-term financial commitments.

Finally, as of December 31, 2024, the quick ratio surged to 8.78, marking a notable uptrend in the company's liquidity strength. This increase indicates that Perdoceo Education Corp had substantially more liquid assets available to cover its short-term obligations, highlighting a robust financial position.

Overall, the consistent and increasing quick ratios demonstrate Perdoceo Education Corp's solid liquidity management and efficient short-term debt payment capabilities, potentially enhancing investor confidence in the company's financial health.