Stride Inc (LRN)

Financial leverage 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
Total assets US$ in thousands 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 1,073,260 1,036,000 826,950 813,497
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
Financial leverage ratio 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 1.59 1.56 1.27 1.30

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 displayed fluctuations over the past several quarters. The ratio indicates the proportion of the company's debt to its equity, reflecting the extent to which the company relies on debt to finance its operations and growth.

From December 2019 to June 2021, the financial leverage ratio showed a generally increasing trend, reaching its peak at 2.18 in the second quarter of 2021. This suggests that during this period, Stride Inc significantly increased its reliance on debt compared to equity to finance its activities.

Subsequently, the financial leverage ratio started to decrease from the third quarter of 2021 onwards, indicating a reduction in the proportion of debt relative to equity in the company's capital structure. The ratio fluctuated in a range between 1.56 and 1.96 throughout 2021 and the first half of 2022.

In the second half of 2022, the financial leverage ratio saw an upward trend, reaching 2.06 in September 2022. This increase suggests that the company once again increased its utilization of debt for financing.

However, from September 2022 to June 2024, the ratio exhibited a declining trend with some fluctuations, indicating a gradual decrease in the reliance on debt in the capital structure of Stride Inc. The ratio ranged between 1.63 and 1.73 during this period.

Overall, the analysis of Stride Inc's financial leverage ratio shows shifting levels of debt utilization, potentially impacting the company's risk profile, financial stability, and ability to service its debt obligations. Further examination of the company's financial statements and overall business strategy would be necessary to understand the reasons behind these fluctuations and their implications for the company's financial health.