Stride Inc (LRN)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The analysis of Stride Inc.’s solvency ratios over the period from September 2020 through June 2025 reveals notable insights. The data indicates that the company maintained a debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio of zero across all reported periods. This consistency suggests that the company did not have any reported long-term or short-term debt and did not leverage external financing during this timeframe.
In conjunction with these zero debt ratios, the financial leverage ratio demonstrates the level of financial risk and reliance on debt financing. The ratios fluctuate within a relatively narrow band, ranging from approximately 1.55 to 2.18. Early in the period, around September 2020 to September 2021, the leverage ratios persisted near 1.95–2.18, indicating a moderate degree of leverage. From late 2021 onward, the ratios gradually declined, reaching about 1.55–1.72 by mid-2024, reflecting a decreasing reliance on debt or increased equity base.
Given the zero debt ratios, the described changes in the financial leverage ratio appear attributable to variations in equity levels rather than changes in debt. The consistent nullity of debt-to-assets, debt-to-capital, and debt-to-equity ratios implies that Stride Inc. operated on a debt-free basis during the indicated periods, which signifies a robust solvency position and low financial risk from leverage.
Overall, the company's solvency profile during this period is characterized by a low or nonexistent debt burden, with financial leverage ratios indicating a reliance primarily on equity capital. This financial stance underscores strong solvency and conservative capital structure management, positioning Stride Inc. as financially stable in terms of debt obligations throughout the reporting timeline.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 11.14 | 40.20 | 36.66 | 34.70 | 30.39 | 28.77 | 28.08 | 25.65 | 21.41 | 18.90 | 17.16 | 16.23 | 18.95 | 12.01 | 7.80 | 4.84 | 5.90 | 7.01 | 8.63 | 20.28 |
The analysis of Stride Inc's interest coverage ratios over the specified period indicates a significant upward trajectory in the company's ability to meet its interest obligations. Starting from a high of 20.28 times on September 30, 2020, the ratio experienced a notable decline reaching a low of 4.84 times by September 30, 2021. This decline suggests a period during which the company's capacity to cover interest expenses was relatively weaker, potentially due to increased interest expenses or reduced earnings before interest and taxes (EBIT).
However, following this nadir, the interest coverage ratio demonstrated a marked and sustained improvement. From December 31, 2021, onward, the ratio consistently increased, reaching 12.01 times by March 31, 2022, and continuing upward to peaking at 36.66 times on December 31, 2024. This trend indicates a significant strengthening of Stride Inc’s earnings relative to its interest obligations, implying improved profitability and/or reduced interest expenses. The ratios from late 2022 through mid-2025 suggest a strong and stable ability to service interest costs, with ratios well above typical comfort thresholds.
Notably, the ratio shows a brief decline to 11.14 times as of June 30, 2025, suggesting a possible temporary setback or increased interest obligations during this period. Nonetheless, the overall pattern from late 2021 onwards portrays a robust financial condition in terms of debt service capacity, with the company establishing a progressively stronger position in covering its interest expenses over this timeframe.