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.