Stride Inc (LRN)

Debt-to-assets ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Long-term debt	US$ in thousands	414,675	413,035	411,438	299,271	—
Total assets	US$ in thousands	1,920,460	1,760,670	1,643,540	1,577,300	1,073,260
Debt-to-assets ratio		0.22	0.23	0.25	0.19	0.00

June 30, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $414,675K ÷ $1,920,460K
= 0.22

The debt-to-assets ratio of Stride Inc has fluctuated over the past five years. As of June 30, 2024, the ratio stands at 0.22, indicating that 22% of the company's assets are financed by debt. This ratio has slightly decreased from the previous year, where it was 0.23.

In general, a lower debt-to-assets ratio suggests lower financial risk, as the company relies less on debt to fund its assets. However, it is important to note that a ratio of 0.22 still indicates that a significant portion of Stride Inc's assets are funded by debt.

Comparing the current ratio to historical data, there has been some variability in the debt-to-assets ratio over the past five years. The ratio was highest in June 30, 2022 at 0.25 and lowest in June 30, 2020 at 0.00, which may have been due to various strategic decisions or financial circumstances during those periods.

Overall, the downward trend in the debt-to-assets ratio over the past two years could indicate that Stride Inc is becoming less reliant on debt financing for its assets, which may positively impact the company's financial stability and flexibility in the long term. However, further analysis of the company's overall financial health and performance is necessary to provide a more comprehensive assessment.