Stride Inc (LRN)

Return on equity (ROE)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Net income	US$ in thousands	204,183	126,867	107,130	71,451	24,506
Total stockholders’ equity	US$ in thousands	1,176,020	947,296	812,581	804,648	675,329
ROE		17.36%	13.39%	13.18%	8.88%	3.63%

June 30, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $204,183K ÷ $1,176,020K
= 17.36%

Return on equity (ROE) is a key financial metric that measures a company's profitability by evaluating how effectively it is utilizing its shareholders' equity to generate profits.

Looking at the trend in Stride Inc's ROE over the past five years, we can observe a positive trajectory. The ROE has been consistently increasing from 3.63% in 2020 to 17.36% in 2024. This indicates that the company has been improving its ability to generate profits relative to the shareholders' equity invested in the business.

The increasing trend in ROE suggests that Stride Inc has been effectively utilizing its equity capital to generate higher returns for its shareholders over the years. This improvement could be attributed to factors such as increasing profitability, efficient cost management, and effective asset utilization.

Overall, the upward trend in Stride Inc's ROE indicates positive performance and efficient management of the company's equity capital. Investors and stakeholders may view this trend favorably as it reflects the company's ability to deliver stronger returns on the capital invested by shareholders.