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.