Stride Inc (LRN)

Cash conversion cycle

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Days of inventory on hand (DOH)	days	7.28	4.23	3.99	4.52	7.73	4.89	5.23	6.23	8.27	5.63	5.65	5.94	9.81	7.80	8.48	7.86	10.07	7.04	7.37	7.63
Days of sales outstanding (DSO)	days	88.22	109.97	99.65	126.71	96.29	100.07	95.11	121.16	94.94	98.87	103.19	126.60	93.69	114.09	130.20	143.81	88.33	106.97	94.69	100.98
Number of days of payables	days	8.11	7.47	6.41	15.51	10.29	7.53	7.16	15.39	14.24	7.71	7.99	13.99	15.35	12.74	11.63	30.12	14.39	9.08	11.24	17.18
Cash conversion cycle	days	87.39	106.73	97.23	115.72	93.73	97.43	93.18	112.00	88.97	96.79	100.86	118.54	88.14	109.15	127.05	121.55	84.01	104.94	90.82	91.43

June 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 7.28 + 88.22 – 8.11
= 87.39

The cash conversion cycle of Stride Inc has fluctuated over the past few quarters, indicating variations in the efficiency of its working capital management. The cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

From December 2019 to June 2020, the company's cash conversion cycle decreased from 127.05 days to 84.01 days, suggesting an improvement in its efficiency in managing cash flows and working capital. However, from September 2020 to December 2020, there was a slight increase to 104.94 days, indicating a potential slowdown in the company's ability to efficiently convert its investments into cash.

The cycle continued to fluctuate in the following quarters, with periods of increase and decrease. The latest data as of June 2024 shows a cash conversion cycle of 87.39 days, which is slightly lower compared to the previous quarter. This may indicate that Stride Inc has been able to manage its working capital more effectively in the recent period.

Overall, Stride Inc should continue to monitor and improve its cash conversion cycle to ensure efficient management of its working capital, optimize cash flows, and support sustainable business operations.