Stride Inc (LRN)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.22 | 0.22 | 0.23 | 0.23 | 0.23 | 0.24 | 0.25 | 0.25 | 0.25 | 0.26 | 0.27 | 0.26 | 0.19 | 0.19 | 0.20 | 0.20 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.26 | 0.27 | 0.29 | 0.30 | 0.30 | 0.31 | 0.33 | 0.34 | 0.34 | 0.34 | 0.36 | 0.36 | 0.27 | 0.27 | 0.28 | 0.29 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.35 | 0.38 | 0.40 | 0.43 | 0.44 | 0.46 | 0.49 | 0.52 | 0.51 | 0.53 | 0.56 | 0.57 | 0.37 | 0.38 | 0.39 | 0.40 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The solvency ratios of Stride Inc, as indicated by the debt-to-assets, debt-to-capital, debt-to-equity, and financial leverage ratios, have shown fluctuations over the periods analyzed.
The debt-to-assets ratio has generally remained in the range of 0.22 to 0.27, indicating that, on average, around 22% to 27% of Stride Inc's total assets are financed by debt. This suggests a relatively conservative approach to leveraging resources.
The debt-to-capital ratio, reflecting the proportion of debt in the company's capital structure, has fluctuated between 0.26 and 0.36. This indicates that debt constitutes 26% to 36% of Stride Inc's total capital, with a slight increasing trend over time.
The debt-to-equity ratio, a measure of the company's financial leverage and risk, has varied from 0.35 to 0.57. This indicates that the company has been using more debt to finance its operations compared to equity, with the ratio trending upwards over the periods considered.
The financial leverage ratio, which provides insight into the company's ability to meet its financial obligations, has fluctuated between 1.63 and 2.18. This suggests that the company has been increasing its reliance on debt financing, which could potentially lead to higher financial risk and interest expenses.
Overall, the solvency ratios of Stride Inc indicate a mix of conservative and aggressive debt financing strategies, with a trend towards higher leverage over time. It's important for stakeholders to closely monitor these ratios to assess the company's ability to meet its debt obligations and manage financial risks effectively.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio for Stride Inc has shown a fluctuating trend over the past few quarters. The company's interest coverage ratio has generally been healthy, indicating its ability to meet its interest payment obligations comfortably.
In the most recent quarter, as of June 30, 2024, the interest coverage ratio stands at 72.16, reflecting the company's strong ability to cover its interest expenses with its earnings. This represents a significant improvement compared to the previous quarter's interest coverage ratio of 138.31 as of March 31, 2024. It is noteworthy that the interest coverage ratio has been above 1 in all periods, indicating that Stride Inc has generated sufficient operating income to cover its interest expenses.
Looking at the historical trend, there have been fluctuations in the interest coverage ratio, with some quarters showing higher ratios than others. Despite this, the overall trend indicates that Stride Inc has managed its interest payment obligations effectively.
Overall, based on the interest coverage ratios observed, Stride Inc appears to have a solid financial position and a healthy ability to meet its interest obligations, which is a positive indicator for creditors and investors. However, it is important for the company to continue monitoring and maintaining its interest coverage ratio to ensure financial stability and sustainability.