Stride Inc (LRN)

Short-term

Turnover ratios

The activity ratios of Stride Inc provide insights into the efficiency of the company's operations in managing its inventory, receivables, payables, and working capital.

1. Inventory Turnover: This ratio indicates how many times the company's inventory is sold and replaced within a given period. Stride Inc's inventory turnover has shown fluctuations over the periods analyzed, ranging from a low of 36.23 to a high of 91.40. The higher the ratio, the better the company is at managing its inventory levels and turning over stock efficiently.

2. Receivables Turnover: The receivables turnover ratio reflects how efficiently a company collects payments from its customers. Stride Inc's receivables turnover ratios have varied, with values between 2.54 and 4.14. A higher ratio indicates that the company is collecting payments from its customers more quickly.

3. Payables Turnover: The payables turnover ratio measures the speed at which a company pays its suppliers. Stride Inc's payables turnover ratios have fluctuated, with values ranging from 12.12 to 56.92. A higher ratio suggests that the company is managing its payables effectively and paying its suppliers in a timely manner.

4. Working Capital Turnover: This ratio shows how efficiently a company is using its working capital to generate sales. Stride Inc's working capital turnover has varied, ranging from 2.03 to 4.57. A higher ratio indicates that the company is effectively utilizing its working capital to support its sales activities.

Overall, by analyzing these activity ratios, it can be seen that Stride Inc has experienced fluctuations in its efficiency in managing inventory, receivables, payables, and working capital over the periods analyzed. Tracking these ratios over time can help identify trends and areas where the company may need to focus on improving operational efficiency.

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Average number of days

Looking at the activity ratios of Stride Inc over the past few quarters, we observe the following trends:

1. Days of Inventory on Hand (DOH):
- The Days of Inventory on Hand have fluctuated over the quarters, ranging from a low of 3.99 days to a high of 9.81 days.
- The trend indicates that the company has been able to manage its inventory levels efficiently, with lower DOH implying faster inventory turnover.

2. Days of Sales Outstanding (DSO):
- The Days of Sales Outstanding have also varied significantly, with a range from 88.22 days to 143.81 days.
- Higher DSO values suggest that the company is taking longer to collect its receivables, which could impact cash flow and liquidity.

3. Number of Days of Payables:
- The Number of Days of Payables has shown some fluctuations, with values ranging from 6.41 days to 30.12 days.
- A higher number of days of payables indicates that the company is taking longer to pay its suppliers, which could affect relationships with vendors.

Overall, it is important for Stride Inc to closely monitor these activity ratios to ensure efficient management of inventory, timely collection of receivables, and prudent management of payables. Efforts to optimize these ratios can lead to improved working capital management and overall financial performance.

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Long-term

The fixed asset turnover ratio for Stride Inc fluctuated over the periods analyzed, ranging from a low of 9.02 to a high of 40.05. The ratio indicates how efficiently the company is generating sales from its fixed assets. A higher fixed asset turnover ratio suggests that the company is generating more revenue per dollar invested in fixed assets. Stride Inc saw an improvement in this ratio over time, with a notable increase from 9.64 in March 2022 to 40.05 in June 2024, indicating a more efficient utilization of fixed assets to generate sales.

On the other hand, the total asset turnover ratio, which measures the efficiency of the company in generating sales from all assets, remained relatively stable around 1.00, with some fluctuations between 0.82 and 1.26. A total asset turnover ratio of 1.00 means that the company is generating $1 of sales for every $1 of assets. Although there were fluctuations, the overall trend in total asset turnover for Stride Inc appears to have been relatively consistent, showing stable performance in generating revenue from total assets over the periods analyzed.

In summary, Stride Inc demonstrated improvements in its fixed asset turnover ratio, indicating better utilization of fixed assets to generate sales, while the total asset turnover ratio remained relatively stable, signifying consistent efficiency in generating revenue from all assets.