Stride Inc (LRN)

Cash ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cash and cash equivalents	US$ in thousands	782,497	500,614	410,807	389,398	386,080
Short-term investments	US$ in thousands	202,769	191,672	108,618	63,000	17,300
Total current liabilities	US$ in thousands	302,879	244,280	309,135	302,073	306,244
Cash ratio		3.25	2.83	1.68	1.50	1.32

June 30, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($782,497K + $202,769K) ÷ $302,879K
= 3.25

The cash ratio of Stride Inc has demonstrated a consistent upward trend over the analyzed period from June 30, 2021, to June 30, 2025. Specifically, the cash ratio increased from 1.32 in 2021 to 1.50 in 2022, indicating a modest improvement in the company's liquidity position. This upward movement accelerated between 2022 and 2023, reaching 1.68, further enhancing the firm's capacity to meet its short-term obligations solely with its cash and cash equivalents.

The most notable development occurs between 2023 and 2024, where the cash ratio surges to 2.83. This signifies that the company's cash holdings more than doubled relative to its current liabilities, highlighting a significant strengthening of liquidity reserves. The upward trajectory continues into 2025, with the ratio reaching 3.25, suggesting that Stride Inc has maintained or further increased its capacity to cover its current liabilities with cash on hand.

Overall, the increasing cash ratio indicates a progressively more conservative liquidity position, reflecting improved cash management and a strong liquidity buffer. This trend reduces the dependence on other current assets for meeting short-term liabilities and is indicative of prudent financial management. However, it also suggests that the company may be holding excess liquidity, which could have implications for the efficiency of asset utilization and potential opportunities for strategic investment or operational use.