Stride Inc (LRN)

Working capital turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Revenue	US$ in thousands	2,035,790	1,835,280	1,684,900	1,535,650	1,040,700
Total current assets	US$ in thousands	1,245,450	1,065,200	950,534	857,530	501,271
Total current liabilities	US$ in thousands	244,280	309,135	302,073	306,244	273,416
Working capital turnover		2.03	2.43	2.60	2.79	4.57

June 30, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,035,790K ÷ ($1,245,450K – $244,280K)
= 2.03

The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is using its working capital more effectively to generate revenue.

Looking at Stride Inc's working capital turnover ratio over the past five years, we can observe a general declining trend. The ratio has decreased from 4.57 in 2020 to 2.03 in 2024.

A notable drop in the ratio occurred between 2020 and 2021, where it decreased from 4.57 to 2.79. This suggests that the company may have become less efficient in utilizing its working capital to generate sales revenue during this period.

Although the ratio fluctuated slightly between 2022 and 2023, it continued to decrease over the years. The decreasing trend indicates that Stride Inc may be becoming less efficient in managing its working capital to drive revenue growth.

It is essential for Stride Inc to closely monitor its working capital turnover ratio and implement strategies to improve efficiency in managing its working capital to drive revenue growth in the future.