Stride Inc (LRN)

Quick ratio

		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	US$ in thousands	500,614	376,577	354,387	254,626	410,807	373,678	318,279	194,524	389,398	308,564	256,986	218,519	386,080	329,031	258,107	308,784	212,299	150,034	211,641	165,944
Short-term investments	US$ in thousands	383,372	174,900	151,200	105,300	111,900	79,300	82,900	75,100	63,000	61,200	51,500	29,500	17,300	—	—	—	—	—	—	—
Receivables	US$ in thousands	492,253	598,865	528,948	656,443	484,369	495,326	458,163	567,434	438,260	440,386	451,433	542,504	394,097	440,322	454,285	454,899	251,822	301,649	266,007	282,962
Total current liabilities	US$ in thousands	244,280	281,961	240,902	299,136	309,135	284,247	249,258	289,245	302,073	250,179	238,198	284,634	306,244	254,802	228,611	235,994	273,416	257,619	133,670	139,702
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

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, which measures the company's ability to meet its short-term obligations with its most liquid assets, has shown fluctuations over the past several quarters.

The quick ratio has generally been relatively high, indicating a strong ability to cover short-term liabilities with liquid assets. The ratio peaked at 5.63 in June 2024, which suggests the company had $5.63 of liquid assets available to cover each dollar of current liabilities. This high ratio may indicate a conservative approach to managing liquidity and potential financial stability in the short term.

However, there have been fluctuations in the quick ratio over time. While the ratio remained above 3 for most quarters, indicating a comfortable liquidity position, there were some quarters where the ratio dropped below 3, such as in December 2020 and September 2020. These lower ratios could imply potential challenges in meeting short-term obligations with liquid assets during those periods.

Overall, although the quick ratio of Stride Inc has shown fluctuations, the company has generally maintained a strong liquidity position, with ample liquid assets to cover short-term liabilities. It is essential for the company to continue monitoring and managing its liquidity effectively to ensure it can meet its obligations in a timely manner.