Stride Inc (LRN)

Cash conversion cycle

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Days of inventory on hand (DOH)	days	9.38	10.51	11.26	12.05	14.46
Days of sales outstanding (DSO)	days	84.92	84.58	92.12	90.58	87.71
Number of days of payables	days	10.98	11.72	14.98	20.76	22.64
Cash conversion cycle	days	83.33	83.38	88.40	81.87	79.53

June 30, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 9.38 + 84.92 – 10.98
= 83.33

The cash conversion cycle (CCC) of Stride Inc has exhibited fluctuations over the period from June 30, 2021, to June 30, 2025. Initially, at 79.53 days in 2021, the CCC increased slightly to 81.87 days in 2022, indicating a marginal elongation in the time it takes for the company to convert investments into cash flows. This upward trend continued through 2023, reaching 88.40 days, reflecting a further increase of approximately 6.53 days over the two-year span and suggesting a longer period of cash tied up within operations.

Following this peak in 2023, a decrease was observed in 2024, with the CCC declining to 83.38 days, a reduction of approximately 5.02 days. This indicates a partial improvement in the efficiency of converting inventory and receivables into cash, though the cycle still remains significantly longer than the initial value in 2021. In 2025, the CCC remained relatively stable at 83.33 days, exhibiting minimal change from the previous year.

Overall, the trend shows an initial increase in the cash conversion cycle, peaking around 2023, followed by a modest reduction, yet the cycle remains elevated compared to the beginning of the period. This pattern suggests periods where operational efficiency in managing receivables, inventory, and payables may have been challenged, with some recent improvements indicating efforts to optimize working capital management.