Scholastic Corporation (SCHL)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,625,500 | 1,592,100 | 1,580,400 | 1,598,400 | 1,589,700 | 1,643,100 | 1,644,300 | 1,669,600 | 1,704,000 | 1,690,100 | 1,709,700 | 1,646,000 | 1,642,900 | 1,529,900 | 1,462,900 | 1,344,900 | 1,300,300 | 1,182,900 | 1,278,700 | 1,469,700 |
| Total current assets | US$ in thousands | 725,300 | 757,000 | 811,500 | 715,100 | 676,900 | 728,700 | 840,600 | 784,700 | 559,000 | 927,900 | 1,082,300 | 991,500 | 996,000 | 991,300 | 1,027,500 | 958,100 | 1,028,300 | 1,058,300 | 1,111,100 | 1,055,200 |
| Total current liabilities | US$ in thousands | 626,400 | 616,700 | 655,800 | 628,400 | 534,700 | 608,500 | 636,700 | 598,700 | 340,000 | 636,900 | 724,700 | 668,300 | 619,700 | 659,200 | 671,700 | 661,600 | 695,500 | 730,000 | 606,600 | 563,500 |
| Working capital turnover | 16.44 | 11.35 | 10.15 | 18.44 | 11.18 | 13.67 | 8.06 | 8.98 | 7.78 | 5.81 | 4.78 | 5.09 | 4.37 | 4.61 | 4.11 | 4.54 | 3.91 | 3.60 | 2.53 | 2.99 |
May 31, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,625,500K ÷ ($725,300K – $626,400K)
= 16.44
The analysis of Scholastic Corporation's working capital turnover over the specified periods reveals a pattern of significant fluctuation, indicative of dynamic management of working capital and operational efficiency.
Initially, the metric decreased from approximately 2.99 on August 31, 2020, to a low of 2.53 on November 30, 2020, suggesting reduced efficiency in utilizing working capital to generate sales during this period. Subsequently, it demonstrated a remarkable upward trend, reaching 3.60 by February 28, 2021, and further increasing to 3.91 on May 31, 2021. This trajectory continued through subsequent periods, with notable acceleration after August 31, 2022, culminating in a peak of 18.44 on August 31, 2024.
The sharp increases in the working capital turnover ratio, especially between August 2023 and August 2024, indicate a significant improvement in the efficiency with which the company utilizes its working capital to support sales. The ratios exceeding 10 from February 2024 onward suggest that the company is generating substantially more sales per dollar of working capital, possibly due to operational efficiencies, restructuring, or strategic changes in working capital management.
Overall, the data depict a trend of increasing working capital efficiency over time, with the most recent periods marking markedly elevated turnover rates. This pattern reflects a strategic shift towards optimizing working capital, potentially enhancing liquidity and operational performance. However, such rapid increases warrant further scrutiny to determine if they are sustainable and to understand the underlying causes driving these efficiency gains.
Peer comparison
May 31, 2025