Stride Inc (LRN)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	2,036,610	1,987,713	1,937,438	1,890,964	1,836,068	1,806,731	1,758,305	1,709,439	1,684,896	1,625,762	1,596,760	1,564,135	1,535,397	1,408,686	1,273,532	1,154,604	1,040,639	1,029,236	1,025,395	1,022,758
Property, plant and equipment	US$ in thousands	50,856	—	—	125,673	52,332	61,326	68,124	151,634	61,537	67,565	165,559	173,355	72,069	82,918	78,503	70,147	38,668	44,174	35,188	37,253
Fixed asset turnover		40.05	—	—	15.05	35.08	29.46	25.81	11.27	27.38	24.06	9.64	9.02	21.30	16.99	16.22	16.46	26.91	23.30	29.14	27.45

June 30, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,036,610K ÷ $50,856K
= 40.05

Fixed asset turnover is a financial ratio that measures how efficiently a company is generating revenue from its fixed assets. It is calculated by dividing net sales by average fixed assets. A higher fixed asset turnover ratio indicates that the company is using its fixed assets effectively to generate sales.

In the case of Stride Inc, the fixed asset turnover ratio varies over the periods provided. The ratio fluctuates significantly, ranging from as low as 9.02 to as high as 40.05. This variability could indicate changes in the efficiency of Stride Inc in utilizing its fixed assets to generate sales.

For example, the fixed asset turnover ratio of 40.05 at June 30, 2024, suggests that Stride Inc generated $40.05 in sales for every $1 of fixed assets. This high ratio indicates a high level of efficiency in utilizing fixed assets to generate revenue during that period.

On the other hand, the lower fixed asset turnover ratios, such as 9.02 at December 31, 2021, may suggest a less efficient usage of fixed assets to generate sales during that period.

Overall, analyzing the trend of fixed asset turnover ratios over time can provide insights into the company's operational efficiency and how effectively it is utilizing its fixed assets to drive revenue. It is essential for Stride Inc to monitor and improve its fixed asset turnover ratio to ensure optimal utilization of its assets and maximize profitability.