Stride Inc (LRN)
Cash conversion cycle
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 7.28 | 7.73 | 8.26 | 9.81 | 9.98 |
| Days of sales outstanding (DSO) | days | 88.26 | 96.33 | 94.94 | 93.67 | 88.32 |
| Number of days of payables | days | 8.11 | 10.29 | 14.23 | 15.35 | 14.26 |
| Cash conversion cycle | days | 87.42 | 93.77 | 88.97 | 88.12 | 84.04 |
June 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 7.28 + 88.26 – 8.11
= 87.42
The cash conversion cycle of Stride Inc has fluctuated over the past five years, ranging from 84.04 days in 2020 to 93.77 days in 2023. In the most recent fiscal year (ending June 30, 2024), the company's cash conversion cycle improved to 87.42 days, indicating a more efficient management of cash flows from operations, inventory, and accounts receivable.
A lower cash conversion cycle suggests that Stride Inc is able to convert its investment in inventory and accounts receivable into cash more quickly, potentially improving liquidity and overall financial health. The company's ability to manage its working capital effectively is essential for sustaining operations and meeting financial obligations.
Overall, the trend in Stride Inc's cash conversion cycle demonstrates a focus on optimizing working capital management, although there may be room for further improvement to enhance operational efficiency and cash flow performance in the future.
Peer comparison
Jun 30, 2024