Stride Inc (LRN)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 39.24% | 39.08% | 38.54% | 38.21% | 37.43% | 37.57% | 37.21% | 36.48% | 35.22% | 35.52% | 35.34% | 35.04% | 35.36% | 34.71% | 34.36% | 33.93% | 34.81% | 34.09% | 32.93% | 32.91% |
| Operating profit margin | 14.97% | 16.49% | 15.25% | 13.91% | 12.23% | 11.55% | 11.02% | 10.44% | 9.01% | 8.71% | 8.30% | 7.88% | 9.29% | 8.10% | 6.87% | 5.84% | 7.19% | 6.83% | 5.66% | 5.54% |
| Pretax margin | 15.87% | 17.33% | 16.16% | 14.85% | 13.12% | 12.39% | 11.74% | 11.03% | 9.39% | 8.47% | 7.81% | 7.39% | 8.72% | 7.68% | 6.25% | 4.84% | 6.20% | 6.13% | 5.18% | 5.40% |
| Net profit margin | 19.71% | 13.10% | 12.30% | 11.38% | 10.01% | 9.29% | 8.80% | 8.16% | 6.90% | 6.17% | 5.63% | 5.28% | 6.35% | 5.50% | 4.40% | 3.38% | 4.65% | 4.68% | 3.99% | 4.06% |
The profitability ratios of Stride Inc. demonstrate a consistent upward trend across the analyzed period, reflecting an improvement in the company's ability to generate profit relative to sales and operating activities.
Gross Profit Margin: Starting at approximately 32.91% in September 2020, the gross profit margin exhibits a steady increase over time, reaching approximately 39.24% by June 2025. This growth indicates that Stride Inc. has been able to improve its cost management strategies or enhance its pricing policies, resulting in higher gross profits relative to sales.
Operating Profit Margin: Similarly, the operating profit margin has shown significant enhancement, rising from around 5.54% in September 2020 to approximately 14.97% in June 2025. The steady increase, especially notable from late 2022 onward, suggests effective operational efficiencies and possibly a higher operating leverage.
Pretax Margin: The pretax margin has also improved consistently, climbing from 5.40% in September 2020 to an estimated 15.87% in June 2025. The trend underscores enhanced profitability before tax considerations, possibly due to improved operating performance and better expense control.
Net Profit Margin: The net profit margin reflects a marked upward trajectory, from 4.06% in September 2020 to about 19.71% in June 2025. This significant expansion indicates that after accounting for all expenses, including taxes, the company’s profitability has substantially increased. The sharp rise toward the end of the period suggests the realization of efficiencies, scaling effects, or a reduction in effective tax rates.
Overall, the analysis demonstrates that Stride Inc. has experienced a sustained improvement in profitability ratios over the analyzed timeframe. The growth across gross, operating, pretax, and net margins signifies enhanced efficiency, better cost management, and possibly revenue growth strategies that have effectively translated into higher profitability levels.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.70% | 17.07% | 16.15% | 14.89% | 13.00% | 12.15% | 11.99% | 11.18% | 9.40% | 9.27% | 9.02% | 8.32% | 9.53% | 8.38% | 7.20% | 5.82% | 7.00% | 6.26% | 4.90% | 4.55% |
| Return on assets (ROA) | 20.67% | 13.56% | 13.03% | 12.18% | 10.63% | 9.76% | 9.57% | 8.74% | 7.21% | 6.56% | 6.12% | 5.57% | 6.52% | 5.69% | 4.61% | 3.37% | 4.53% | 4.29% | 3.45% | 3.34% |
| Return on total capital | 17.57% | 28.72% | 27.10% | 25.99% | 22.77% | 22.34% | 22.75% | 22.55% | 18.99% | 17.59% | 17.40% | 17.19% | 19.31% | 18.03% | 15.62% | 12.01% | 13.17% | 11.65% | 8.93% | 9.03% |
| Return on equity (ROE) | 32.04% | 21.12% | 20.46% | 19.78% | 17.36% | 16.75% | 16.52% | 16.11% | 13.39% | 12.41% | 11.76% | 11.48% | 13.18% | 11.47% | 9.59% | 7.35% | 8.88% | 8.37% | 6.75% | 6.52% |
The profitability ratios of Stride Inc., as reflected in the provided data, exhibit a consistent upward trend over the analyzed period, indicating improved efficiency in generating earnings relative to its assets and capital.
Operating Return on Assets (Operating ROA):
Beginning at 4.55% as of September 30, 2020, the Operating ROA demonstrated steady growth, reaching 11.99% by December 31, 2023. The most recent data show an increase to 14.89% as of September 30, 2024, and further to 17.07% by March 31, 2025. This signifies enhanced operational efficiency in utilizing assets to generate operating income, with a notable acceleration in growth observed from early 2023 onwards.
Return on Assets (ROA):
Similarly, the standard ROA progressed from 3.34% on September 30, 2020, to 9.57% at the end of 2023. The upward trajectory continues with the latest figure at 13.56%, signifying a substantial improvement in overall asset profitability, largely driven by operational enhancements and better asset utilization.
Return on Total Capital:
This ratio, which encompasses both debt and equity financing, started at 9.03% for September 2020 and generally trended upward, reaching 27.10% by December 2024. However, a decline is witnessed in the most recent period, where the ratio drops to 17.57% as of June 30, 2025. The initial consistent rise indicates effective capital deployment and possibly an improved mix of capital sources over the period, but the recent decline suggests possible changes in capital structure or recent profitability pressures.
Return on Equity (ROE):
The ROE, reflecting profitability attributable to shareholders’ equity, shows a positive progression from 6.52% in September 2020 to a peak of 32.04% as of June 30, 2025. The substantial increase, particularly in the latter part of the period, highlights enhanced shareholder returns, possibly driven by improved net income margins, leverage effects, or a combination thereof.
Summary:
Overall, the profitability ratios of Stride Inc. depict a compelling narrative of growth in efficiency and profitability from late 2020 through mid-2025. The ratios indicate effective management of assets and capital, along with increasing returns to equity holders. The continued upward trends in Operating ROA and ROA suggest improved operational performance, while the significant rise in ROE points toward value creation for shareholders. The recent decline in total capital return ratio warrants further analysis to determine if it is due to strategic changes, capital structure adjustments, or temporary profitability fluctuations. Nonetheless, the data suggest a generally healthy profitability profile with positive momentum in the analyzed period.