Stride Inc (LRN)

Debt-to-equity 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-equity ratio		0.35	0.44	0.51	0.37	0.00

June 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $414,675K ÷ $1,176,020K
= 0.35

The debt-to-equity ratio of Stride Inc has fluctuated over the past five years, indicating changes in the company's capital structure and financial leverage. In 2020, the ratio was notably low at 0.00, suggesting either minimal or no debt relative to equity. This potentially reflects a conservative financial strategy or a strong equity base.

From 2021 to 2023, the ratio increased, reaching its peak of 0.51 in 2022. This upward trend indicates a rising reliance on debt to finance operations or investments compared to equity. A higher ratio typically implies higher financial risk and leverage for the company.

However, in 2024, the debt-to-equity ratio decreased to 0.35, indicating a reduction in the proportion of debt relative to equity. This decline could signify a strategic shift towards reducing debt levels or increasing equity investment in the company. Overall, the varying ratios reflect changes in Stride Inc's capital structure and financial risk profile over the years.