Stride Inc (LRN)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	249,600	229,868	213,754	197,538	165,499	157,649	146,044	134,886	156,628	131,919	109,878	91,415	110,456	96,110	72,056	63,909	32,457	28,097	36,865	39,850
Interest expense (ttm)	US$ in thousands	3,459	1,662	1,384	1,425	1,290	2,349	2,213	2,151	1,770	1,762	1,701	1,411	1,112	848	712	735	820	1,161	1,639	1,965
Interest coverage		72.16	138.31	154.45	138.62	128.29	67.11	65.99	62.71	88.49	74.87	64.60	64.79	99.33	113.34	101.20	86.95	39.58	24.20	22.49	20.28

June 30, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $249,600K ÷ $3,459K
= 72.16

The interest coverage ratio for Stride Inc has shown fluctuation over the past few quarters. The ratio is a measure of the company's ability to meet its interest obligations on outstanding debt. An interest coverage ratio above 1 indicates that the company is generating enough operating income to cover its interest expenses.

Based on the data provided, Stride Inc's interest coverage ratio has generally remained at healthy levels, with values well above 1. In particular, the ratios for Dec 31, 2023, and Mar 31, 2024 stood out as especially strong, at 154.45 and 138.31 respectively, indicating a high ability to cover interest payments.

However, there were also periods, such as Sep 30, 2020, and Dec 31, 2019, where the interest coverage ratio dropped significantly, signaling potential challenges in meeting interest expenses during those periods.

Overall, it is important for Stride Inc to maintain a consistently strong interest coverage ratio to ensure financial stability and demonstrate its ability to comfortably manage its debt obligations. Further monitoring and analysis of this ratio will be key for assessing the company's financial health and risk management.