Perdoceo Education Corp (PRDO)

Quick ratio

		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	US$ in thousands	118,009	165,639	140,533	89,845	109,408	147,120	148,749	190,443	319,982	266,400	87,343	86,031	105,684	58,120	91,536	37,932	108,687	47,411	51,104	38,799
Short-term investments	US$ in thousands	485,135	429,617	428,104	420,943	399,315	375,871	366,840	307,620	174,213	209,391	389,310	360,986	300,676	305,610	250,265	243,651	185,488	234,415	229,132	201,105
Receivables	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	55,018	29,913	27,870	29,840
Total current liabilities	US$ in thousands	111,039	139,244	160,695	135,139	163,381	140,404	110,198	110,347	140,244	134,411	117,772	103,219	103,815	98,495	110,430	92,289	103,813	132,140	128,482	92,621
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

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 shown significant fluctuations over the past eight quarters, ranging from a low of 3.45 in Q4 2022 to a high of 5.84 in Q4 2023. The quick ratio measures the company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory.

A quick ratio above 1 indicates that the company has enough liquid assets to cover its short-term liabilities. Perdoceo's quick ratio has consistently been well above 1, indicating a strong ability to meet its short-term obligations.

The increasing trend in the quick ratio from Q2 2022 to Q4 2023 reflects an improvement in the company's liquidity position over this period. This suggests that Perdoceo has been managing its short-term assets and liabilities effectively, which is a positive signal for investors and creditors.

It is important to note that while a high quick ratio is generally seen as favorable, an excessively high ratio may indicate that the company is holding too much cash and not efficiently deploying its assets. Therefore, ongoing monitoring of the quick ratio and its trend is essential to assess the company's financial health accurately.