Stride Inc (LRN)
Payables 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 |
| Payables | US$ in thousands | 40,970 | 48,854 | 61,997 | 62,144 | 40,428 |
| Payables turnover | 44.99 | 35.47 | 25.65 | 23.77 | 25.60 |
June 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,843,070K ÷ $40,970K
= 44.99
The payables turnover ratio for Stride Inc has shown a consistent upward trend over the past five years, indicating that the company is efficiently managing its accounts payable.
In particular, the payables turnover has significantly improved from 25.60 in 2020 to 44.99 in 2024, showcasing a substantial increase in the company's ability to pay off its suppliers quicker. This indicates better liquidity management and potentially improved relationships with suppliers.
The steady increase in the payables turnover ratio suggests that Stride Inc is effectively utilizing its credit terms with suppliers, which can lead to better cash flow management and potentially lower financing costs. Overall, a higher payables turnover ratio is generally seen as a positive indicator of a company's operational efficiency and financial health.
Peer comparison
Jun 30, 2024