Stride Inc (LRN)

Quick ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cash	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	—
Receivables	US$ in thousands	492,253	484,369	438,260	394,097	251,822
Total current liabilities	US$ in thousands	244,280	309,135	302,073	306,244	273,416
Quick ratio		5.63	3.26	2.95	2.60	1.70

June 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($500,614K + $383,372K + $492,253K) ÷ $244,280K
= 5.63

The quick ratio of Stride Inc has shown a steady increase over the past five years, indicating an improving liquidity position. The quick ratio has significantly increased from 1.70 in 2020 to 5.63 in 2024. This suggests that the company's ability to cover its short-term liabilities with its most liquid assets has strengthened over the years.

A quick ratio above 1 indicates that Stride Inc has sufficient liquid assets to cover its current liabilities, with higher values indicating a stronger liquidity position. The quick ratio of 5.63 in 2024 demonstrates a comfortable liquidity position for the company, reflecting a considerable increase in its ability to meet short-term obligations without relying heavily on inventory or other less liquid assets.

Overall, the improving trend in Stride Inc's quick ratio over the years suggests that the company has been effectively managing its liquidity and maintaining a healthy financial position. This trend is positive as it indicates a reduced risk of financial distress due to liquidity constraints.