Stride Inc (LRN)

Working capital turnover

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Revenue	US$ in thousands	2,405,320	2,040,070	1,837,360	1,686,670	1,536,760
Total current assets	US$ in thousands	1,632,730	1,245,450	1,065,200	950,534	857,530
Total current liabilities	US$ in thousands	302,879	244,280	309,135	302,073	306,244
Working capital turnover		1.81	2.04	2.43	2.60	2.79

June 30, 2025 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,405,320K ÷ ($1,632,730K – $302,879K)
= 1.81

The analysis of Stride Inc's working capital turnover over the period from June 30, 2021 to June 30, 2025 reveals a consistent downward trend. Specifically, the ratio decreased from 2.79 in 2021 to 2.60 in 2022, then to 2.43 in 2023, further declining to 2.04 in 2024, and reaching 1.81 by 2025. This sustained decline indicates that the company has been generating relatively less sales for each dollar of working capital employed over this four-year span.

A decreasing working capital turnover ratio can suggest several potential underlying factors. It may imply that the company's operational efficiency in utilizing working capital has diminished, possibly due to increased inventory levels, slower collection of receivables, or extended payable periods. Alternatively, it could reflect strategic shifts in business operations, such as expanded credit terms or investment in growth initiatives that temporarily impact the efficiency ratio.

Overall, the trend warrants attention as a declining working capital turnover might signal deteriorating operational performance or a change in working capital management efficiency. Continuous monitoring and further analysis of underlying components—such as current assets and current liabilities—would be necessary to better understand the drivers behind this decline and to assess its implications for financial health and operational efficiency.