Stride Inc (LRN)

Inventory turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cost of revenue	US$ in thousands	1,843,070	1,732,870	1,590,060	1,477,350	1,034,950
Inventory	US$ in thousands	36,748	36,716	36,003	39,690	28,300
Inventory turnover		50.15	47.20	44.16	37.22	36.57

June 30, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,843,070K ÷ $36,748K
= 50.15

Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory. A higher inventory turnover ratio indicates that a company is selling its inventory quickly and efficiently.

In the case of Stride Inc, we can observe an increasing trend in inventory turnover over the past five years. The ratio has steadily improved from 36.57 in 2020 to 50.15 in 2024. This upward trend suggests that Stride Inc has been successful in managing its inventory more effectively over the years.

The significant increase in inventory turnover from 2020 to 2024 indicates that Stride Inc has been able to sell its inventory quicker relative to the previous years. This improvement can be a result of better inventory management practices, streamlined operations, or more efficient sales and distribution processes.

Overall, a high and increasing inventory turnover ratio for Stride Inc is a positive indicator of operational efficiency and effective inventory management, which can ultimately lead to improved financial performance and profitability for the company.