Stride Inc (LRN)

Return on total capital

Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020
Earnings before interest and tax (EBIT) US$ in thousands 249,600 165,499 156,628 110,456 32,457
Long-term debt US$ in thousands 414,675 413,035 411,438 299,271
Total stockholders’ equity US$ in thousands 1,176,020 947,296 812,581 804,648 675,329
Return on total capital 15.69% 12.17% 12.80% 10.01% 4.81%

June 30, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $249,600K ÷ ($414,675K + $1,176,020K)
= 15.69%

The return on total capital for Stride Inc has shown a positive trend over the past five years, indicating an improvement in the company's ability to generate profit relative to the total capital employed.

In the most recent fiscal year ending on June 30, 2024, the return on total capital was 15.69%, representing a significant increase compared to the previous years. This suggests that Stride Inc has been more efficient in utilizing its total capital to generate earnings for its investors.

The return on total capital for the preceding years also demonstrated a positive trajectory, with values of 12.17%, 12.80%, 10.01%, and 4.81% for the years ending on June 30, 2023, 2022, 2021, and 2020, respectively. This consistent improvement signals that the company has been effectively managing its capital to create value for shareholders over time.

Overall, the upward trend in Stride Inc's return on total capital is a positive indicator of the company's financial performance and efficiency in utilizing its capital resources to generate returns for its stakeholders.


Peer comparison

Jun 30, 2024