Scholastic Corporation (SCHL)
Days of sales outstanding (DSO)
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 4.86 | 5.39 | 6.47 | 6.35 | 5.81 | 5.27 | 8.27 | 5.94 | 5.82 | 4.71 | 5.81 | 5.04 | 4.93 | 3.82 | 4.81 | 3.77 | 3.49 | 3.22 | 4.55 | 4.51 | |
| DSO | days | 75.04 | 67.67 | 56.45 | 57.45 | 62.84 | 69.21 | 44.14 | 61.45 | 62.67 | 77.56 | 62.82 | 72.47 | 74.10 | 95.59 | 75.91 | 96.81 | 104.70 | 113.21 | 80.17 | 80.95 |
February 28, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.86
= 75.04
The analysis of Scholastic Corporation’s Days of Sales Outstanding (DSO) over the specified periods reveals significant fluctuations that reflect the company’s evolving credit and collection practices, as well as potential external influences.
From May 31, 2020, to August 31, 2020, the DSO remained relatively stable, decreasing slightly from approximately 80.95 days to 80.17 days, indicating consistent collection periods. However, a marked increase occurs by November 30, 2020, where DSO rises sharply to approximately 113.21 days. This significant extension suggests a deterioration in collection efficiency or changes in credit terms, possibly influenced by disruptions or strategic shifts during that period.
Following this peak, the DSO decreases gradually over the next several quarters, falling to approximately 96.81 days by May 31, 2021, then returning to a lower level of around 75.91 days by August 31, 2021. The decline continues, with the DSO reducing further to approximately 62.82 days by August 31, 2022, indicating an improvement in receivables collection efficiency.
Between November 30, 2022, and May 31, 2023, the DSO stabilizes around the low 60s, specifically approximately 61.45 days and 62.67 days, respectively. The subsequent decline to a notably low point of 44.14 days on August 31, 2023, suggests enhanced collection practices or stricter credit policies, reducing the period receivables remain outstanding.
However, a subsequent upward trend emerges, as the DSO increases to approximately 69.21 days by November 30, 2023, and further to about 75.04 days by February 28, 2025. This resurgence indicates a possible loosening of credit policies, collection delays, or external factors affecting receivables, leading to an extended collection period.
Overall, the DSO shows periods of contraction and expansion, with the most notable peaks occurring in late 2020 and late 2024, and the most significant improvements observed in late 2022 to mid-2023. The fluctuations suggest a dynamic credit management environment responsive to internal strategies and external market conditions. The recent increase hints at potential challenges in receivables collections that may warrant further analysis to assess the impact on working capital and liquidity.
Peer comparison
Feb 28, 2025