Stride Inc (LRN)

Working capital turnover

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020
Revenue (ttm) US$ in thousands 2,405,317 2,285,854 2,193,315 2,110,972 2,040,069 1,989,375 1,938,822 1,892,389 1,837,358 1,809,080 1,760,518 1,711,590 1,686,666 1,628,965 1,599,388 1,566,026 1,536,760 1,408,181 1,273,190 1,154,604
Total current assets US$ in thousands 1,632,730 1,512,980 1,388,480 1,291,330 1,245,450 1,209,080 1,088,870 1,080,280 1,065,200 1,006,810 928,815 931,137 950,534 871,579 816,131 857,579 857,530 830,205 768,477 805,491
Total current liabilities US$ in thousands 302,879 269,567 230,660 230,655 244,280 281,961 240,902 299,136 309,135 284,247 249,258 289,245 302,073 250,179 238,198 284,634 306,244 254,802 228,611 235,994
Working capital turnover 1.81 1.84 1.89 1.99 2.04 2.15 2.29 2.42 2.43 2.50 2.59 2.67 2.60 2.62 2.77 2.73 2.79 2.45 2.36 2.03

June 30, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,405,317K ÷ ($1,632,730K – $302,879K)
= 1.81

The analysis of Stride Inc.'s working capital turnover ratio over the period from September 30, 2020, to June 30, 2025, reveals a consistent downward trend. The ratio started at 2.03 in late September 2020 and experienced gradual increases during the subsequent periods, reaching a peak of approximately 2.79 by June 30, 2021. This initial rise suggests an improvement in the efficiency with which the company utilized its working capital to generate sales during that period.

However, from the latter half of 2021 onward, the ratio displayed a steady decline. By September 30, 2021, it decreased slightly to 2.73, continuing its downward trajectory through 2022 and into 2023. The ratio further diminished to 2.29 by December 31, 2024, indicative of declining operational efficiency in converting working capital into sales.

The ongoing reduction in the working capital turnover ratio suggests that the company is generating less sales volume per dollar of working capital over time. This could reflect factors such as increased working capital requirements due to operational changes, declining sales efficiency, or shifts in business strategy. The trend highlights a potential need for the company to reassess its working capital management practices or operational efficiency to maintain sustainable growth and profitability levels.