Stride Inc (LRN)

Short-term

Turnover ratios

Inventory Turnover:

- The inventory turnover ratio has shown a consistent increasing trend over the past five years, indicating that Stride Inc is more efficient in managing its inventory. This means that the company is selling its inventory items more frequently within a year.

Receivables Turnover:

- The receivables turnover ratio has fluctuated slightly over the years but has generally remained stable. This indicates that Stride Inc is collecting its accounts receivable in a timely manner. A higher turnover ratio suggests better efficiency in collecting outstanding payments from customers.

Payables Turnover:

- The payables turnover ratio has significantly increased over the past five years, indicating that the company is paying its suppliers more frequently. This could imply improved relationships with suppliers or more efficient management of accounts payable.

Working Capital Turnover:

- The working capital turnover ratio has decreased over the years, indicating that the company is generating less revenue per dollar of working capital. This could imply that Stride Inc may not be maximizing the efficiency of its working capital in generating sales revenue.

Overall, Stride Inc's activity ratios reflect improvements in inventory management and account receivables collection, but also suggest changes in payment practices and working capital efficiency. Further analysis would be required to understand the specific implications of these trends on the company's operations and financial performance.

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Average number of days

Activity ratios provide insight into how efficiently a company manages its working capital and operations. Let's analyze the activity ratios of Stride Inc over the past five years.

Days of inventory on hand (DOH) measures how long it takes for the company to turn its inventory into sales. A decreasing trend in DOH from 9.98 days in 2020 to 7.28 days in 2024 indicates that Stride Inc has improved its inventory management efficiency, holding less inventory to support sales.

Days of sales outstanding (DSO) indicates the average number of days it takes for the company to collect revenue after making a sale. A fluctuating trend in DSO, with a peak of 96.33 days in 2023 and a decrease to 88.26 days in 2024, suggests that the company may have faced challenges in collecting receivables efficiently in certain periods.

Number of days of payables highlights the average number of days it takes for the company to pay its suppliers. A declining trend in the number of days of payables from 14.26 days in 2020 to 8.11 days in 2024 indicates that Stride Inc has been paying its suppliers more quickly, which may have positive implications for maintaining supplier relationships.

Overall, while Stride Inc has shown improvements in managing its inventory and accounts payable, there are fluctuations in its accounts receivable collection efficiency. Monitoring and possibly improving the DSO can help the company enhance its overall working capital management and operational efficiency.

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Long-term

The long-term activity ratios of Stride Inc indicate the company's efficiency in utilizing its fixed assets and total assets to generate revenue over the past five years.

The fixed asset turnover ratio has steadily increased from 26.91 in 2020 to 40.03 in 2024, indicating that the company has become more efficient in generating sales relative to its investment in fixed assets. This suggests that Stride Inc is effectively utilizing its long-term assets to drive revenue growth.

Meanwhile, the total asset turnover ratio has also shown a slight upward trend, improving from 0.97 in 2020 to 1.06 in 2024. This indicates that the company is generating more revenue per dollar of total assets, signaling improved asset utilization efficiency over the years.

Overall, the increasing trends in both the fixed asset turnover and total asset turnover ratios suggest that Stride Inc has been successful in optimizing the utilization of its long-term assets to drive sales growth and improve operational efficiency.