Stride Inc (LRN)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 260,033 | 407,095 | 357,262 | 315,659 | 267,822 | 246,429 | 234,902 | 216,118 | 179,914 | 158,189 | 146,466 | 135,222 | 156,875 | 140,736 | 114,712 | 86,446 | 106,005 | 91,697 | 67,157 | 64,929 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,479,620 | 1,417,370 | 1,318,100 | 1,214,350 | 1,176,020 | 1,103,210 | 1,032,680 | 958,493 | 947,296 | 899,361 | 841,899 | 786,823 | 812,581 | 780,570 | 734,233 | 719,906 | 804,648 | 786,779 | 752,429 | 719,021 |
| 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% |
June 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $260,033K ÷ ($—K + $1,479,620K)
= 17.57%
Analyzing the historical data of Stride Inc’s return on total capital reveals a generally positive trend over the observed period. Starting at approximately 9.03% as of September 30, 2020, the metric experienced fluctuations but demonstrated a consistent improvement from mid-2021 onwards. Notably, the return increased from around 12.01% on September 30, 2021, to reach approximately 22.55% by September 30, 2023, and further to 27.10% by December 31, 2024. This signifies enhanced efficiency in generating earnings from the company's capital base over these years.
The upward trajectory indicates effective operational management, improved profitability, or strategic capital investment that has led to better utilization of total capital. The later period, especially from late 2022 through 2024, exhibits a steady increase in return, suggesting a favorable period for the company's overall financial performance.
However, the data also shows some volatility, with notable fluctuations such as a decrease from approximately 28.72% in March 2025 to 17.57% in June 2025. Such fluctuations could be attributable to changes in capital structure, investment activities, or temporary operational challenges.
Overall, the trend of increasing return on total capital over the recent years underscores an improved ability of Stride Inc to generate higher earnings relative to its capital investments, reflecting positively on its operational effectiveness and strategic utilization of resources over the analyzed period.
Peer comparison
Jun 30, 2025