Scholastic Corporation (SCHL)
Receivables 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 |
| Receivables | US$ in thousands | 250,200 | 286,900 | 326,200 | 344,900 | 329,800 |
| Receivables turnover | 6.35 | 5.93 | 5.03 | 3.75 | 4.51 |
May 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,587,800K ÷ $250,200K
= 6.35
The receivables turnover ratio for Scholastic Corporation has been improving steadily over the past five years, indicating the company's ability to efficiently collect outstanding receivables from customers.
In 2020, the receivables turnover ratio was 4.51, suggesting that on average, Scholastic collected its accounts receivable 4.51 times during the year. This ratio increased to 5.03 in 2022, indicating a more efficient collection process compared to the previous year.
The trend continued positively with further improvement in 2023, reaching a turnover ratio of 5.93, showing that the company was collecting receivables more frequently. Notably, in 2024, Scholastic achieved a receivables turnover ratio of 6.35, reflecting the highest efficiency in collecting outstanding customer balances over the five-year period.
Overall, the increasing trend in the receivables turnover ratio for Scholastic Corporation indicates effective credit and collection management practices, leading to quicker conversion of accounts receivable into cash, enhancing the company's liquidity position.
Peer comparison
May 31, 2024