Stride Inc (LRN)

Return on assets (ROA)

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
Net income (ttm) US$ in thousands 474,047 299,403 269,744 240,187 204,183 184,773 170,548 154,417 126,867 111,585 99,042 90,341 107,130 89,535 70,405 52,902 71,451 65,844 50,809 46,902
Total assets US$ in thousands 2,293,960 2,207,940 2,070,780 1,971,960 1,920,460 1,892,210 1,782,200 1,767,640 1,760,670 1,699,850 1,619,290 1,622,100 1,643,540 1,574,530 1,525,740 1,570,360 1,577,300 1,534,170 1,471,950 1,404,480
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%

June 30, 2025 calculation

ROA = Net income (ttm) ÷ Total assets
= $474,047K ÷ $2,293,960K
= 20.67%

The analysis of Stride Inc.'s return on assets (ROA) demonstrates a consistent upward trend over the specified period from September 30, 2020, to June 30, 2025. Initially, the ROA was approximately 3.34% in September 2020, showing modest profitability relative to total assets. Throughout the following quarters, the ROA exhibited gradual increases, reaching approximately 4.29% by March 31, 2021, and further rising to around 4.53% by June 30, 2021. The upward trajectory continued with a notable acceleration, with ROA ascending to approximately 6.52% as of June 30, 2022, and maintaining a generally positive momentum through the subsequent periods.

A significant increase is observed starting in late 2022 and into 2023, where the ROA surpasses 8%, with September 2023 recording approximately 8.74%. Moving into 2024, the ratio reflects stronger efficiency, reaching approximately 9.57% by the end of December 2023, and continuing its ascent to about 10.63% by June 30, 2024. The trend persists into the third quarter of 2024, with ROA at approximately 12.18%, and further improving to nearly 13.03% by December 2024.

The most notable development occurs in 2025, where the ROA exhibits a sharp increase, reaching roughly 13.56% at the end of the first quarter, and then a substantial jump to approximately 20.67% by June 30, 2025. This rapid increase suggests a significant enhancement in asset utilization effectiveness or profitability relative to the company's total assets.

Overall, the data indicates a steady and substantial improvement in Stride Inc.'s efficiency in generating profit from its assets over the specified period, with particularly accelerated growth observed in the last two quarters of the provided timeline. The trend suggests strong operational performance and increasing asset efficiency, culminating in a marked rise in ROA in mid-2025.