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.