Scholastic Corporation (SCHL)
Cash conversion cycle
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 116.41 | 136.76 | 155.25 | 134.18 | 147.70 |
| Days of sales outstanding (DSO) | days | 61.39 | 57.45 | 61.45 | 72.47 | 96.81 |
| Number of days of payables | days | 73.19 | 71.70 | 79.32 | 77.39 | 75.57 |
| Cash conversion cycle | days | 104.61 | 122.52 | 137.39 | 129.26 | 168.94 |
May 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 116.41 + 61.39 – 73.19
= 104.61
The cash conversion cycle (CCC) of Scholastic Corporation has experienced notable fluctuations over the period from May 31, 2021 to May 31, 2025. Specifically, the data indicates a reduction from 168.94 days in 2021 to 129.26 days in 2022. This decline suggests an improvement in the efficiency of the company's working capital management during this period, likely attributable to faster inventory turnover, faster collection of receivables, or a combination of these factors.
However, the CCC increased slightly to 137.39 days in 2023, reflecting a temporary reversal in the efficiency gains. Subsequently, there was a continuous improvement, with the cycle decreasing to 122.52 days in 2024 and further to 104.61 days in 2025. These downward trends demonstrate an ongoing effort to optimize cash flow management, with the company effectively reducing the overall time it takes to convert investments in inventory and receivables back into cash.
Overall, the trend over the analyzed period shows a consistent move towards shortening the cash conversion cycle, indicating enhanced operational efficiency and better management of working capital. This reduction in the CCC suggests an improved liquidity position and potentially lower financing costs associated with working capital needs.
Peer comparison
May 31, 2025