Stride Inc (LRN)

Return on total capital

Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021
Earnings before interest and tax (EBIT) US$ in thousands — 272,500 171,823 156,628 138,555
Long-term debt US$ in thousands — — — — —
Total stockholders’ equity US$ in thousands 1,479,620 1,176,020 947,296 812,581 804,648
Return on total capital 0.00% 23.17% 18.14% 19.28% 17.22%

June 30, 2025 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,479,620K)
= 0.00%

The provided data indicates the trend of Stride Inc.'s return on total capital over five fiscal periods, from June 30, 2021, through June 30, 2025. Initially, the return was 17.22% in 2021, demonstrating a healthy profitability relative to the company's total capital. There was a modest increase in 2022, reaching 19.28%, which suggests an improved efficiency in generating returns on the capital base. This upward movement continued into the 2023 fiscal year, with the return slightly decreasing to 18.14%, indicating a minor dip in performance or profitability efficiency, although remaining relatively stable.

The most significant change occurs in 2024, where the return on total capital increases substantially to 23.17%, reflecting a notable improvement in the company's ability to generate profit from its capital investments. This spike could be attributable to higher operational efficiencies, better profit margins, or strategic business factors favoring profitability.

However, by June 30, 2025, the return abruptly drops to 0.00%, indicating a potential significant shift in the company's capital structure, a loss, or a data recording anomaly. This zero value could suggest that the company might have experienced a substantial financial event, such as a complete write-down of capital, insolvency, or data reporting issues.

Overall, the trend reflects fluctuating profitability efficiency over the five-year span, with notable improvement in 2024, but the marker of 0.00% in 2025 suggests a critical change in the company's financial status or reporting circumstances at that point.