Stride Inc (LRN)
Solvency ratios
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.55 | 1.63 | 1.86 | 2.02 | 1.96 |
The solvency ratios for Stride Inc. from June 30, 2021, to June 30, 2025, exhibit notable characteristics. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio consistently stand at zero throughout this period, indicating that the company has not reported any debt in relation to its assets, capital, or equity. This suggests a fully equity-financed capital structure, with no reliance on debt financing.
Conversely, the financial leverage ratio varies over the period, starting at 1.96 in June 2021 and experiencing a slight decrease over time, reaching 1.55 by June 2025. The decline in the financial leverage ratio indicates a gradual reduction in the company's financial leverage, implying a decreasing reliance on external financing and potentially an increasing equity cushion relative to total assets.
Overall, the combination of a zero debt-to-assets and related ratios with a decreasing financial leverage ratio suggests that Stride Inc. maintains a conservative capital structure, primarily funded through equity, with a decreasing emphasis on leverage over the analyzed period. This financial profile generally reflects a lower solvency risk but also indicates limited use of borrowed capital for growth or operational activities.
Coverage ratios
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Interest coverage | 0.00 | 30.92 | 20.45 | 18.92 | 7.71 |
The interest coverage ratio for Stride Inc. demonstrates a notable upward trend over the period from June 30, 2021, to June 30, 2024. Specifically, the ratio increased from 7.71 in 2021 to 18.92 in 2022, indicating a significant improvement in the company's ability to meet its interest obligations from operational earnings. This upward trajectory continued into 2023, with the ratio rising further to 20.45, reflecting enhanced financial stability and profitability.
The projected data for June 30, 2024, shows a substantial increase to 30.92, suggesting that the company is expected to substantially strengthen its capacity to cover interest expenses through operating income. Such a high ratio typically indicates low financial risk associated with debt servicing, as the company generates earnings well above its interest obligations.
However, the projected interest coverage ratio for June 30, 2025, is indicated as 0.00, implying that the company may face significant challenges or is anticipated to have no earnings available to cover interest expenses at that time. This sharp decline could be due to expected declines in operating income, potential restructuring scenarios, or the completion of a significant debt repayment that reduces interest obligations drastically. Alternatively, it might signal a projection of negative earnings, which would eliminate the coverage capability.
Overall, the historical and forecasted data suggest a trend of increased financial strength from 2021 to 2024, with a concerning shift projected for 2025 that warrants further examination of the company's operational and financial strategies moving forward.