Scholastic Corporation (SCHL)
Payables turnover
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,595,200 | 1,597,700 | 1,556,700 | 1,323,000 | 1,575,600 |
| Payables | US$ in thousands | 138,500 | 170,900 | 162,300 | 138,000 | 153,600 |
| Payables turnover | 11.52 | 9.35 | 9.59 | 9.59 | 10.26 |
May 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,595,200K ÷ $138,500K
= 11.52
The payables turnover ratio for Scholastic Corporation has fluctuated over the past five years. In 2020, the company had a payables turnover of 10.26, which decreased to 9.59 in both 2021 and 2022 before increasing to 9.35 in 2023 and further increasing to 11.52 in 2024.
A higher payables turnover ratio indicates that the company is paying off its suppliers more quickly, which can be seen as a positive sign as it may indicate efficient management of payables and strong supplier relationships.
However, it is also important to consider the context of the industry and specific company operations when interpreting payables turnover ratios. Overall, the increasing trend in Scholastic Corporation's payables turnover ratio from 2020 to 2024 suggests a more efficient management of payables during this period.
Peer comparison
May 31, 2024