Scholastic Corporation (SCHL)
Fixed asset turnover
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,587,800 | 1,702,600 | 1,640,000 | 1,294,100 | 1,487,100 |
| Property, plant and equipment | US$ in thousands | 511,900 | 521,400 | 517,000 | 556,900 | 576,900 |
| Fixed asset turnover | 3.10 | 3.27 | 3.17 | 2.32 | 2.58 |
May 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,587,800K ÷ $511,900K
= 3.10
The fixed asset turnover ratio for Scholastic Corporation has shown a fluctuating trend over the past five years. The ratio measures how efficiently the company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates better efficiency in asset utilization.
In the most recent year, the fixed asset turnover ratio was 3.10, slightly lower than the previous year's ratio of 3.27. This suggests a slight decrease in the efficiency of generating revenue from fixed assets. However, the current ratio still remains relatively high, reflecting a strong ability to generate sales from its fixed asset base.
Looking back over the five-year period, there has been a general upward trend in the fixed asset turnover ratio, indicating improving efficiency in asset utilization. In 2021, the ratio was 2.32, showing significant improvement from 2020's ratio of 2.58. This suggests that the company has been effectively utilizing its fixed assets to drive revenue growth.
Overall, the fluctuating trend in the fixed asset turnover ratio for Scholastic Corporation may indicate varying levels of efficiency in utilizing fixed assets to generate revenue. Further analysis of the company's operational performance and asset management strategies would be beneficial in understanding the underlying factors driving these fluctuations.
Peer comparison
May 31, 2024