Scholastic Corporation (SCHL)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 1,487,100 |
| Total current assets | US$ in thousands | 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 | 1,035,300 |
| Total current liabilities | US$ in thousands | 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 | 501,500 |
| Working capital turnover | 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 | 2.79 |
February 28, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,592,100K ÷ ($757,000K – $616,700K)
= 11.35
An analysis of Scholastic Corporation’s working capital turnover across various reporting periods reveals a consistent upward trend, indicative of increasing efficiency in utilizing working capital to generate sales revenue. Initially, the ratio hovered around 2.79 as of May 31, 2020, and showed moderate fluctuations over subsequent periods, reaching a high of approximately 4.54 by August 31, 2021. This progression suggests improvement in operational efficiency during that timeframe.
From late 2021 onward, the ratio continued to strengthen, surpassing 5.0 in February 2022 and climbing further to peak at 8.98 in August 2023. This significant rise reflects a notable enhancement in the company’s ability to generate sales relative to its working capital, potentially due to optimized working capital management, increased sales activity, or both.
Between August 2023 and subsequent periods, the ratio experienced some volatility but maintained elevated levels, peaking at 18.44 in August 2024. Such a substantial increase signifies an exceptional efficiency in leveraging working capital, which could be linked to strategic initiatives, changes in sales volume, or shifts in working capital components.
Overall, the data indicates that Scholastic Corporation has significantly improved its working capital turnover over the analyzed periods. The rising trend suggests enhanced operational efficiency and better asset utilization, although such rapid increases warrant consideration of underlying factors such as changes in working capital structure, seasonal effects, or accounting practices. This trend points to a positive trajectory in managing working capital to support sales growth, but it also underscores the need for ongoing analysis to ensure that such efficiency gains are sustainable.
Peer comparison
Feb 28, 2025