Stride Inc (LRN)

Debt-to-capital ratio

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Long-term debt	US$ in thousands	414,675	414,271	413,869	413,452	413,035	412,638	412,260	411,848	411,438	411,047	410,674	410,269	299,271	295,388	291,624	287,811	—	—	—	—
Total stockholders’ equity	US$ in thousands	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	675,329	664,628	651,096	624,712
Debt-to-capital ratio		0.26	0.27	0.29	0.30	0.30	0.31	0.33	0.34	0.34	0.34	0.36	0.36	0.27	0.27	0.28	0.29	0.00	0.00	0.00	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

The debt-to-capital ratio of Stride Inc has shown a fluctuating trend over the historical period provided. The ratio has ranged between 0.26 and 0.36, indicating the proportion of the company's total debt to its total capital (debt and equity).

There was a noticeable increase in the debt-to-capital ratio from 0.26 in Jun 2024 to 0.36 in Dec 2021, suggesting an increase in the company's debt relative to its total capital during this period. Subsequently, the ratio decreased to 0.27 in Mar 2021 and remained relatively stable around this level until Mar 2024.

It is important to note that a higher debt-to-capital ratio signifies higher financial leverage and potential risk, as a greater portion of the company's capital structure is funded by debt. Stride Inc's recent ratios indicate a moderate level of debt relative to capital, which may imply a balanced approach to financing its operations.

Overall, analyzing the debt-to-capital ratio provides insights into Stride Inc's capital structure and financial risk management strategies over the past few years. Further analysis and comparison with industry peers would provide a more comprehensive understanding of the company's financial health.