Scholastic Corporation (SCHL)
Working capital turnover
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,625,500 | 1,589,700 | 1,704,000 | 1,642,900 | 1,300,300 |
| Total current assets | US$ in thousands | 725,300 | 676,900 | 559,000 | 996,000 | 1,028,300 |
| Total current liabilities | US$ in thousands | 626,400 | 534,700 | 340,000 | 619,700 | 695,500 |
| Working capital turnover | 16.44 | 11.18 | 7.78 | 4.37 | 3.91 |
May 31, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,625,500K ÷ ($725,300K – $626,400K)
= 16.44
The analysis of Scholastic Corporation's working capital turnover ratios over the period from May 31, 2021, to May 31, 2025, reveals a consistent upward trend, indicating improving efficiency in the company's utilization of its working capital to generate sales.
Specifically, the ratio increased from 3.91 in May 2021 to 4.37 in May 2022, reflecting a modest enhancement in operational efficiency. This positive trajectory accelerated more significantly moving forward, with the ratio reaching 7.78 by May 2023, nearly doubling the prior year's figure. The upward momentum continued, with notable increases to 11.18 in May 2024, and subsequently reaching 16.44 by May 2025.
This progressive increase in working capital turnover suggests that Scholastic Corporation has been increasingly effective at leveraging its working capital resources relative to sales over the period. Such improvements may stem from better inventory management, receivables collection, or overall operational efficiencies. The trend indicates that the company is generating higher sales per dollar of working capital, which is generally viewed as a positive sign of operational performance and financial health.
Overall, the data demonstrates a marked enhancement in working capital utilization efficiency during the analyzed timeframe, which could contribute to improved profitability and cash flow generation for Scholastic Corporation.
Peer comparison
May 31, 2025