Stride Inc (LRN)

Cash ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cash and cash equivalents	US$ in thousands	500,614	410,807	389,398	386,080	212,299
Short-term investments	US$ in thousands	383,372	111,900	63,000	17,300	—
Total current liabilities	US$ in thousands	244,280	309,135	302,073	306,244	273,416
Cash ratio		3.62	1.69	1.50	1.32	0.78

June 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($500,614K + $383,372K) ÷ $244,280K
= 3.62

The cash ratio of Stride Inc has shown an increasing trend over the past five years, indicating the company's ability to cover its short-term liabilities with its cash and cash equivalents. The cash ratio has improved from 0.78 in 2020 to 3.62 in 2024, reflecting a significant enhancement in the company's liquidity position. This suggests that Stride Inc has more than enough cash on hand to meet its short-term obligations, which is a positive sign for the company's financial health. A higher cash ratio also signifies a lower risk of insolvency and indicates that the company is better equipped to deal with unexpected expenses or downturns in the business environment. Overall, the increasing trend in Stride Inc's cash ratio demonstrates prudent cash management and financial stability over the years.