Stride Inc (LRN)

Financial leverage ratio

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 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
Total assets US$ in thousands 2,293,960 2,207,940 2,070,780 1,971,960 1,920,460 1,892,210 1,782,200 1,767,640 1,760,670 1,699,850 1,619,290 1,622,100 1,643,540 1,574,530 1,525,740 1,570,360 1,577,300 1,534,170 1,471,950 1,404,480
Total stockholders’ equity US$ in thousands 1,479,620 1,417,370 1,318,100 1,214,350 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
Financial leverage ratio 1.55 1.56 1.57 1.62 1.63 1.72 1.73 1.84 1.86 1.89 1.92 2.06 2.02 2.02 2.08 2.18 1.96 1.95 1.96 1.95

June 30, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,293,960K ÷ $1,479,620K
= 1.55

The financial leverage ratio of Stride Inc exhibits a pattern of gradual fluctuation over the observed period from September 30, 2020, through June 30, 2025. Initially, the ratio remained relatively stable around 1.95 to 1.96 through September 30, 2020, to June 30, 2021. A notable increase occurs by September 30, 2021, reaching a peak of approximately 2.18, indicating a higher degree of leverage during that period. Subsequently, the ratio declines somewhat, settling around 2.08 at the end of 2021 and remaining relatively stable around 2.02 through March and June of 2022.

From September 2022 onwards, a downward trend is observable. The ratio decreases gradually from approximately 2.06 to 1.92 by the end of 2022, continuing its decline into 2023, where it approaches close to 1.89 by March and 1.86 by June. The decline persists into 2024, with the ratio falling further to approximately 1.84 by September 2023 and continuing downward to about 1.73 by December 2023. The trend persists into 2024 and 2025, with ratios decreasing steadily to 1.56 by June 2025.

This downward movement indicates a consistent reduction in the company's leverage ratio, signifying a possible decrease in reliance on debt or an increase in equity relative to debt over this period. The overall pattern suggests that Stride Inc has been progressively deleveraging since the peak in late 2021, potentially reflecting improved debt management, increased equity financing, or both.