Scholastic Corporation (SCHL)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 751,000 |
| Payables | US$ in thousands | 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 | 153,600 |
| Payables turnover | 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 | 4.89 |
February 28, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $718,800K ÷ $133,500K
= 5.38
The analysis of Scholastic Corporation’s payables turnover over the specified periods reveals considerable fluctuations, indicating varying dynamics in managing accounts payable relative to purchases or cost of goods sold.
Beginning with the fiscal year ending May 31, 2020, the payables turnover stood at 4.89, suggesting that the company, on average, paid its suppliers approximately 4.89 times within that period. This figure experienced a slight decline by August 31, 2020, decreasing to 4.38, and further tapered to 4.06 by November 30, 2020. These reductions may reflect a slowing in accounts payable payments or increased purchase cycles.
In the subsequent periods, the turnover exhibited some recovery: it rose to 4.73 in February 2021 and further increased to 4.83 by May 31, 2021. However, a notable decline occurred in the latter part of 2021, with the rate dropping to 3.65 on August 31, 2021, and slightly rising again to 3.96 by November 30, 2021. These shifts could indicate changes in payment policies, supplier relationships, or operational cash flow management.
Moving into 2022, the payables turnover resumed an upward trend, reaching 4.26 in February and 4.72 in May. Nevertheless, it declined again in the latter quarters, dipping to 3.72 in August 2022 and slightly increasing to 3.76 in November 2022. The opening of 2023 saw a significant increase to 4.99 in February, followed by a slight decrease to 4.60 in May and stable readings at 4.60 in August. By November 2023, the rate was marginally higher at 4.67, indicating relatively consistent payment activity.
The most notable change appears in early 2024, with the payables turnover surging to 5.94 in February, signaling an acceleration in paying suppliers or an increase in purchase volume. This high rate persisted at 5.31 in May 2024, then declined to 3.99 in August 2024 before rising again to 4.63 in November 2024, and further to 5.38 in February 2025.
Overall, the payables turnover exhibits cyclical patterns with periods of increase and decrease, reflecting shifts in payment strategies, operational needs, or supplier terms. The recorded high of 5.94 in February 2024 indicates a relatively aggressive payment cycle at that point, while lower values in some periods suggest more extended payment terms or shifts in liquidity management. The variability underscores the importance of analyzing external factors, such as supply chain conditions and company policies, to fully understand the implications of these fluctuations.
Peer comparison
Feb 28, 2025