Stride Inc (LRN)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 37.51% | 35.26% | 35.40% | 34.83% | 33.39% |
| Operating profit margin | 12.26% | 9.02% | 9.30% | 7.19% | 3.12% |
| Pretax margin | 13.20% | 9.38% | 8.74% | 6.25% | 3.18% |
| Net profit margin | 10.03% | 6.91% | 6.36% | 4.65% | 2.35% |
Based on the profitability ratios provided for Stride Inc over the past five years, there is a clear trend of consistent improvement in the company's profitability.
The gross profit margin has shown a steady increase from 33.39% in 2020 to 37.51% in 2024, indicating that the company has been able to effectively control its cost of goods sold and enhance its pricing strategies over the years.
The operating profit margin has also shown a significant improvement, increasing from 3.12% in 2020 to 12.26% in 2024. This indicates that Stride Inc has been able to efficiently manage its operating expenses and generate higher profits from its core business activities.
Similarly, the pretax margin and net profit margin have both seen a positive trend, with steady increases over the five-year period. The pretax margin has increased from 3.18% in 2020 to 13.20% in 2024, while the net profit margin has shown a consistent improvement from 2.35% in 2020 to 10.03% in 2024.
Overall, the profitability ratios suggest that Stride Inc has been successful in improving its overall operational efficiency and increasing its bottom line profitability over the past five years. This trend indicates a positive outlook for the company's financial performance and sustainability in the long run.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.00% | 9.40% | 9.53% | 7.00% | 3.02% |
| Return on assets (ROA) | 10.63% | 7.21% | 6.52% | 4.53% | 2.28% |
| Return on total capital | 15.69% | 12.17% | 12.80% | 10.01% | 4.81% |
| Return on equity (ROE) | 17.36% | 13.39% | 13.18% | 8.88% | 3.63% |
Stride Inc has shown a consistent improvement in its profitability ratios over the past five years, indicating effective management of its assets and capital.
- Operating return on assets (Operating ROA) has increased steadily from 3.02% in 2020 to 13.00% in 2024, demonstrating the company's ability to generate operating income relative to its total assets.
- Return on assets (ROA) has also shown a positive trend, increasing from 2.28% in 2020 to 10.63% in 2024, suggesting the company's proficiency in generating net income from its total assets.
- Return on total capital has experienced substantial growth, rising from 4.81% in 2020 to 15.69% in 2024, indicating the company's capacity to generate returns from its total capital investments.
- Return on equity (ROE) has demonstrated consistent improvement, increasing from 3.63% in 2020 to 17.36% in 2024, showcasing the company's ability to deliver higher returns to its shareholders over time.
Overall, the upward trajectory of Stride Inc's profitability ratios reflects the company's effective utilization of its assets and capital to drive improved financial performance and shareholder value.