Stride Inc (LRN)
Interest coverage
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 249,600 | 165,499 | 156,628 | 110,456 | 32,457 |
| Interest expense | US$ in thousands | 4,279 | 2,080 | 1,769 | 1,111 | 820 |
| Interest coverage | 58.33 | 79.57 | 88.54 | 99.42 | 39.58 |
June 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $249,600K ÷ $4,279K
= 58.33
The interest coverage ratio of Stride Inc has been consistently robust over the past five years, indicating the company's strong ability to cover its interest expenses with its operating income. The trend shows a generally increasing pattern from 2020 to 2023, peaking at 99.42 in June 2021, before experiencing a slight decrease to 58.33 in June 2024.
The high interest coverage ratios suggest that Stride Inc has sufficient earnings to comfortably meet its interest obligations, reflecting a lower financial risk for lenders and investors. However, the slight decrease in the ratio in 2024 may warrant further investigation to understand any underlying reasons for this change and ensure the company's long-term financial stability.
Peer comparison
Jun 30, 2024