Stride Inc (LRN)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	1,176,020	947,296	812,581	804,648	675,329
Debt-to-capital ratio		0.26	0.30	0.34	0.27	0.00

June 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $414,675K ÷ ($414,675K + $1,176,020K)
= 0.26

Based on the data provided for Stride Inc over the past five years, the debt-to-capital ratio has fluctuated. In 2020, the company had a debt-to-capital ratio of 0.00, indicating that it did not have any debt as part of its capital structure. However, this changed in subsequent years, with the ratio increasing to 0.27 in 2021, 0.34 in 2022, and then decreasing to 0.30 in 2023.

As of June 30, 2024, Stride Inc's debt-to-capital ratio stands at 0.26, suggesting that the company has reduced its reliance on debt as a source of financing relative to its total capital. A lower debt-to-capital ratio generally indicates a lower level of financial leverage and therefore may be viewed positively by investors and creditors as it signifies lower risk associated with debt repayment.

Overall, the decreasing trend in the debt-to-capital ratio from 2022 to 2024 could indicate that Stride Inc is becoming more conservative in its financial structure and managing its debt levels effectively. However, it is important to consider other factors such as industry norms and overall market conditions when assessing the company's financial health and risk profile.