Scholastic Corporation (SCHL)
Payables turnover
| May 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 736,000 | 718,800 | 728,200 | 733,700 | 735,400 | 748,500 | 745,600 | 771,900 | 786,400 | 790,600 | 799,100 | 776,700 | 765,500 | 738,900 | 715,300 | 676,600 | 666,500 | 635,100 | 672,100 | 737,100 |
| Payables | US$ in thousands | 157,300 | 133,500 | 157,200 | 184,000 | 138,500 | 126,100 | 159,500 | 167,700 | 170,900 | 158,400 | 212,400 | 208,900 | 162,300 | 173,400 | 180,500 | 185,600 | 138,000 | 134,300 | 165,500 | 168,300 |
| Payables turnover | 4.68 | 5.38 | 4.63 | 3.99 | 5.31 | 5.94 | 4.67 | 4.60 | 4.60 | 4.99 | 3.76 | 3.72 | 4.72 | 4.26 | 3.96 | 3.65 | 4.83 | 4.73 | 4.06 | 4.38 |
May 31, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $736,000K ÷ $157,300K
= 4.68
The payables turnover ratio of Scholastic Corporation over the specified periods demonstrates notable fluctuations that offer insights into the company's accounts payable management and vendor payment practices.
From August 31, 2020, through May 31, 2021, the ratios exhibit an upward trend, increasing from 4.38 to 4.83, indicating an improvement in the company's ability to settle its payables more frequently within accounting periods. A ratio approaching 4.8 suggests that, on average, the company turns over its payables approximately five times per year, reflecting relatively prompt payments to suppliers.
However, starting from August 31, 2021, the ratio declines significantly to 3.65, and remains relatively low through November 30, 2021, with a slight rebound to 4.26 by February 28, 2022. These declines may indicate extended periods in settling payables, potentially due to deliberate management strategies to optimize short-term cash flow or changes in supplier credit terms.
Subsequently, the ratios trend upward again, peaking at 4.72 by May 31, 2022, followed by a decline to 3.72 in August 2022, and then a gradual recovery reaching 4.99 by February 28, 2023. The increase to nearly five turns per year suggests a trend toward faster payment cycles or improved liquidity management.
More recently, from May 31, 2023, onward, the ratios oscillate around the 4.6 to 4.7 range, with a notable spike to 5.94 at February 29, 2024. This spike indicates an exceptionally rapid turnover of payables during that period, possibly reflecting aggressive payment policies or improvements in cash flow facilitating quicker payments to vendors. However, subsequent ratios decrease back to 4.63 in November 2024 and further to 5.38 in February 2025, suggesting some fluctuation but generally maintaining a moderate to high turnover rate in recent periods.
Overall, the payables turnover ratio trends signify periods of strategic variation between faster and more extended payment cycles. The recent higher ratios point toward a potentially more efficient accounts payable management or improved liquidity position, whereas earlier lower ratios may suggest periods of extended payment delays or altered credit terms. These fluctuations underscore the company's dynamic approach to managing its trade payables relative to its operational and financial strategies over time.
Peer comparison
May 31, 2025