Stride Inc (LRN)

Debt-to-equity 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-equity ratio		0.35	0.38	0.40	0.43	0.44	0.46	0.49	0.52	0.51	0.53	0.56	0.57	0.37	0.38	0.39	0.40	0.00	0.00	0.00	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 exhibited fluctuations over the past several quarters. The ratio was 0.35 as of Jun 30, 2024, indicating that for every dollar of equity, the company had $0.35 in debt. This ratio increased to 0.38 in Mar 31, 2024, and further to 0.40 in Dec 31, 2023, showing a trend of increasing leverage.

It is noteworthy that in the earlier periods, the debt-to-equity ratio was relatively lower, with values around 0.30s to 0.40s. However, in the most recent quarters, the ratio crossed the 0.50 mark, reaching 0.52 in Sep 30, 2022, and 0.51 in Jun 30, 2022, indicating a higher level of debt relative to equity.

The increasing trend in the debt-to-equity ratio suggests that Stride Inc has been relying more on debt financing compared to equity financing. This could indicate a strategic decision to leverage debt to fund growth opportunities or manage capital structure. However, it also raises the company's financial risk as higher levels of debt can lead to increased interest expenses and financial obligations.

Further monitoring of Stride Inc's debt-to-equity ratio and assessing it in conjunction with other financial metrics would be necessary to evaluate the company's overall financial health and risk profile accurately.