Stride Inc (LRN)

Liquidity ratios

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 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
Current ratio 5.39 5.61 6.02 5.60 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
Quick ratio 5.10 5.28 5.64 5.19 4.77 4.01 4.21 3.31 3.18 3.26 3.38 2.81 2.88 3.17 3.10 2.59 2.52 2.97 3.05 3.09
Cash ratio 3.25 2.68 3.11 2.26 2.83 1.96 2.10 1.20 1.68 1.59 1.61 0.93 1.50 1.48 1.30 0.77 1.32 1.31 1.14 1.31

The analysis of Stride Inc.'s liquidity ratios over the specified periods reveals a generally strong and increasingly robust liquidity position from September 2020 through June 2025.

Current Ratio: The current ratio demonstrates a consistently high level of liquidity, starting at 3.41 in September 2020. This ratio experienced minor fluctuations but remained above 3.0 through the majority of the period, indicating that the company maintained significantly more current assets than current liabilities. Notably, there is a marked upward trend beginning from December 2023, with the ratio rising sharply to 4.52 by the end of 2023 and continuing upward to 5.10 in June 2024, reaching 5.60 in September 2024, and peaking at 6.02 in December 2024. Although it slightly declined afterward, it stayed above 5.3 through mid-2025. This trend suggests improving short-term liquidity and an increasingly conservative liquidity buffer.

Quick Ratio: Similar to the current ratio, the quick ratio remained comfortably above 2.5 for most of the period, starting at 3.09 in September 2020. It experienced minor variances but displayed a gradual upward trajectory, especially from late 2023 onwards, attaining 4.21 in December 2023 and climbing further to 5.64 by December 2024. This indicates that Stride Inc. has maintained a substantial cushion of liquid assets (excluding inventory) to meet short-term obligations. The quick ratio’s upward trend reinforces the company’s enhanced liquidity posture over time.

Cash Ratio: The cash ratio, which measures the most liquid assets against current liabilities, was above 1.3 for most of the observed periods. It dipped to 0.77 in September 2021 but recovered sharply thereafter, reaching 1.61 in December 2022, and then exhibiting an increasing trend through 2023 and into mid-2024, culminating at 3.25 in June 2025. This indicates a significant build-up in immediately available cash resources relative to near-term obligations, further underscoring the company's liquidity strength.

Overall Perspective: Across all three liquidity measures, there is a clear trend of growth, reflecting an increasingly conservative and strong liquidity position. The high and rising current, quick, and cash ratios suggest that Stride Inc. has ample short-term assets to cover its short-term liabilities, with a particular emphasis on liquidity preservation and portfolio flexibility. The gradual and substantial increase in these ratios over the analyzed period points toward enhanced financial stability and liquidity resilience.


Additional liquidity measure

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 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
Cash conversion cycle days 83.33 107.07 94.19 109.07 83.38 101.27 92.40 105.39 88.40 91.90 88.83 102.47 81.87 91.65 94.80 109.16 79.53 102.42 120.23 100.64

The analysis of Stride Inc.'s cash conversion cycle (CCC) over the specified periods reveals fluctuations within a general range, indicating variability in the company's operational efficiency related to receivables, payables, and inventory management.

From September 30, 2020, to December 31, 2020, the CCC increased from approximately 100.64 days to 120.23 days, reflecting a notable elongation in the cycle. This increment suggests either a delay in collection periods, extended inventories, or a lengthening of payables periods, or a combination thereof. Subsequently, through March 31, 2021, the CCC decreased slightly to around 102.42 days, indicating a partial recovery toward earlier efficiency levels.

In the following quarters, the CCC displayed a decreasing trend until June 30, 2021, reaching approximately 79.53 days, which suggests an improvement in working capital management. However, this is followed by an uptick on September 30, 2021, to about 109.16 days, signifying a temporary deterioration.

Throughout 2022, the CCC experienced relative stability with periodic fluctuations, ranging approximately between 81.87 days and 102.47 days. Notably, at December 31, 2022, the CCC was approximately 88.83 days, reflecting a moderate level of operational efficiency. In early 2023, the cycle maintained around similar levels, with minor variations (91.90 days on March 31, 2023, and 88.40 days on June 30, 2023). The cycle then increased again to approximately 105.39 days by September 30, 2023, indicating a lengthening phase, possibly due to extended receivables or inventory periods.

In late 2023 and into 2024, the CCC showed signs of fluctuation, decreasing to around 92.40 days by December 31, 2023, before rising again to 101.27 days on March 31, 2024. The subsequent quarters exhibited a downward trend to approximately 83.38 days in June 2024, suggesting improved working capital cycles, again followed by an increase to 109.07 days on September 30, 2024.

By the end of 2024 and into March 2025, the CCC fluctuated within the range of approximately 83.33 days to 107.07 days, with the cycle extending again at certain points. Overall, the data indicates periods of both efficiency and inefficiency, with the historical high points around 120 days and lows near 79-83 days.

In summary, the cash conversion cycle of Stride Inc. has experienced cyclical fluctuations, reflecting varying operational conditions. The alternating periods of longer and shorter cycles suggest adjustments in receivables collection, inventory turnover, and payables management, with no clear long-term trend toward consistent improvement or deterioration. This variability underscores the importance of ongoing working capital management practices to optimize cash flows and operational efficiency.