Stride Inc (LRN)

Liquidity ratios

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
Current ratio 5.10 4.29 4.52 3.61 3.45 3.54 3.73 3.22 3.15 3.48 3.43 3.01 2.80 3.26 3.36 3.41 1.83 1.89 3.84 3.57
Quick ratio 5.63 4.08 4.29 3.40 3.26 3.34 3.45 2.89 2.95 3.24 3.19 2.78 2.60 3.02 3.12 3.24 1.70 1.75 3.57 3.21
Cash ratio 3.62 1.96 2.10 1.20 1.69 1.59 1.61 0.93 1.50 1.48 1.30 0.87 1.32 1.29 1.13 1.31 0.78 0.58 1.58 1.19

The liquidity ratios of Stride Inc have shown consistent strength over the reporting periods.

The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has generally improved over time, ranging from 1.83 to 5.10. This indicates that Stride Inc has a strong ability to meet its short-term liabilities with its current assets.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. This ratio has also demonstrated an upward trend, varying between 1.70 and 5.63. A quick ratio above 1 suggests that the company can cover its short-term liabilities without relying on selling inventory.

The cash ratio, which is the most conservative liquidity measure, focuses solely on the company's ability to cover its current liabilities with cash and cash equivalents. The cash ratio for Stride Inc has generally been healthy, fluctuating between 0.58 and 3.62. This indicates that the company maintains a solid base of cash to meet its immediate payment obligations.

Overall, the liquidity ratios of Stride Inc suggest that the company has a strong ability to meet its short-term obligations and has sufficient liquidity to support its operations. However, it is essential for the company to continue monitoring and managing its liquidity position to ensure ongoing financial stability.


Additional liquidity measure

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
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

The cash conversion cycle of Stride Inc has experienced fluctuations over the past years, ranging from a low of 84.01 days to a high of 127.05 days. The cash conversion cycle indicates the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

A longer cash conversion cycle suggests that the company takes more time to sell its inventory and collect cash from customers, potentially leading to liquidity challenges. On the other hand, a shorter cycle indicates more efficiency in managing working capital and converting sales into cash.

In the most recent period, as of June 30, 2024, the cash conversion cycle stands at 87.39 days, showing an improvement from the previous quarter. This indicates that the company has been more effective in managing its inventory, accounts receivable, and accounts payable to shorten the cycle.

It's essential for Stride Inc to continue monitoring and managing its cash conversion cycle to optimize working capital efficiency and ensure liquidity. By streamlining operations, improving inventory turnover, and enhancing accounts receivable collection processes, the company can strive to further reduce its cash conversion cycle and strengthen its financial position.