Stride Inc (LRN)

Financial leverage ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Total assets	US$ in thousands	1,920,460	1,760,670	1,643,540	1,577,300	1,073,260
Total stockholders’ equity	US$ in thousands	1,176,020	947,296	812,581	804,648	675,329
Financial leverage ratio		1.63	1.86	2.02	1.96	1.59

June 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,920,460K ÷ $1,176,020K
= 1.63

The financial leverage ratio of Stride Inc has shown fluctuations over the past five years. As of June 30, 2024, the financial leverage ratio stands at 1.63, indicating that the company relies on debt financing to a moderate extent to support its operations and growth. It is lower compared to the ratios of the previous two years, suggesting a decrease in the company's reliance on debt funds.

The trend from 2020 to 2024 indicates a fluctuating pattern in the financial leverage ratio, with the highest level observed in 2022 at 2.02 and the lowest in 2020 at 1.59. These variations may signify changes in the company's capital structure and financial risk management strategies over the years.

Overall, while the financial leverage ratio of Stride Inc has shown some volatility, the current ratio of 1.63 indicates a moderate level of debt utilization, balancing the benefits of leverage with the associated risks. Monitoring this ratio over time can provide insights into the company's capital structure decisions and financial stability.