Stride Inc (LRN)

Operating return on assets (Operating ROA)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Operating income	US$ in thousands	249,600	165,499	156,628	110,456	32,457
Total assets	US$ in thousands	1,920,460	1,760,670	1,643,540	1,577,300	1,073,260
Operating ROA		13.00%	9.40%	9.53%	7.00%	3.02%

June 30, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $249,600K ÷ $1,920,460K
= 13.00%

Operating return on assets (operating ROA) is a key financial ratio that measures a company's operating performance relative to its total assets. It indicates how efficiently a company is generating operating profit from its assets.

Looking at the trend over the past five years for Stride Inc, we observe a consistent improvement in operating ROA. The operating ROA has increased from 3.02% in Jun 30, 2020, to 13.00% in Jun 30, 2024. This upward trend suggests that Stride Inc has been able to improve its operational efficiency and generate more operating income relative to its total assets.

The significant increase in operating ROA from 2020 to 2024 may indicate that Stride Inc has effectively utilized its assets to generate operating profits. This could be a result of better cost management, higher revenue generation, or improved asset utilization.

Overall, the improving trend in operating ROA underscores Stride Inc's ability to efficiently generate operating profits from its asset base. It indicates a positive trajectory in the company's operational performance and highlights its potential for sustained profitability and growth in the future.