Scholastic Corporation (SCHL)
Working capital 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 |
| Total current assets | US$ in thousands | 676,900 | 892,900 | 996,000 | 1,028,300 | 1,035,300 |
| Total current liabilities | US$ in thousands | 534,700 | 602,300 | 619,700 | 695,500 | 501,500 |
| Working capital turnover | 11.17 | 5.86 | 4.36 | 3.89 | 2.79 |
May 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,587,800K ÷ ($676,900K – $534,700K)
= 11.17
The working capital turnover ratio for Scholastic Corporation has shown a consistent upward trend over the past five years. The ratio has increased from 2.79 in 2020 to 11.17 in 2024, indicating a significant improvement in the efficiency of utilizing working capital to generate sales revenue.
This improvement suggests that Scholastic Corporation has been able to effectively manage its working capital resources to support its operations and drive revenue growth. A higher working capital turnover ratio indicates that the company is able to generate more sales revenue per dollar of working capital invested, which is a positive indicator of operational efficiency and liquidity management.
Overall, the increasing trend in the working capital turnover ratio reflects the company's ability to optimize its working capital position and suggests improved financial health and performance over the years. It signifies that Scholastic Corporation has been successful in leveraging its working capital resources to drive revenue generation and support its business operations effectively.
Peer comparison
May 31, 2024