Stride Inc (LRN)

Days of sales outstanding (DSO)

		Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		4.14	3.32	3.66	2.88	3.79	3.65	3.84	3.01	3.84	3.69	3.54	2.88	3.90	3.20	2.80	2.54	4.13	3.41	3.85	3.61
DSO	days	88.22	109.97	99.65	126.71	96.29	100.07	95.11	121.16	94.94	98.87	103.19	126.60	93.69	114.09	130.20	143.81	88.33	106.97	94.69	100.98

June 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.14
= 88.22

The Days Sales Outstanding (DSO) is a measure of how long it takes a company to collect payments from its customers. A lower DSO indicates that the company is collecting payments more quickly, while a higher DSO suggests that the company may be facing challenges in collecting its accounts receivable.

Analyzing Stride Inc's DSO over the past several quarters, we observe fluctuations in the DSO ratio. In the most recent quarter, as of June 30, 2024, the DSO stood at 88.22 days. This represents an improvement compared to the DSO of 109.97 days in the previous quarter, March 31, 2024. The reduction in DSO from the previous quarter may indicate that Stride Inc has been more efficient in collecting payments from its customers.

Looking at historical data, we see that the DSO has varied over time, ranging from a low of 88.33 days in September 2020 to a high of 143.81 days in September 2020. This variability suggests that Stride Inc's accounts receivable management may fluctuate based on seasonal or operational factors.

In general, a downward trend in DSO over time is seen as positive, as it indicates that the company is improving its collection processes and efficiency in managing accounts receivable. Conversely, a consistent or increasing DSO may raise concerns about the company's cash flow and working capital management.

It is recommended that Stride Inc continues to monitor and analyze its DSO ratio to ensure timely collection of receivables and maintain healthy liquidity levels. This analysis can provide insights into the company's credit policies, customer payment behavior, and overall financial health.