Scholastic Corporation (SCHL)
Cash conversion cycle
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 60.45 | 76.42 | 65.98 | 74.41 | 62.69 |
| Days of sales outstanding (DSO) | days | 57.52 | 61.51 | 72.60 | 97.28 | 80.95 |
| Number of days of payables | days | 31.69 | 39.04 | 38.05 | 38.07 | 35.58 |
| Cash conversion cycle | days | 86.28 | 98.88 | 100.52 | 133.61 | 108.05 |
May 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 60.45 + 57.52 – 31.69
= 86.28
The cash conversion cycle for Scholastic Corporation has displayed fluctuations over the past five years. The trend indicates that the company has been improving its efficiency in converting its investments in inventory and accounts receivable into cash.
In 2024, the cash conversion cycle decreased to 86.28 days, reflecting a faster conversion of inventory and receivables into cash compared to the previous year. This improvement suggests better inventory management and collection of receivables.
In 2023 and 2022, the cash conversion cycle increased to 98.88 days and 100.52 days, respectively, indicating that it took the company longer to convert its investments into cash during these years. This may reflect challenges in managing inventory levels or delays in collecting receivables.
In 2021, the cash conversion cycle spiked to 133.61 days, signifying significant inefficiencies in the conversion process. This could be attributed to extended inventory holding periods or delays in collecting payments from customers.
In 2020, the cash conversion cycle improved to 108.05 days compared to the previous year, suggesting that the company took less time to convert its investments into cash.
Overall, Scholastic Corporation has demonstrated varying levels of efficiency in managing its cash conversion cycle over the past five years, with fluctuations likely influenced by factors such as inventory management, accounts receivable collection practices, and overall operational efficiency. Tracking this metric can help assess the company's working capital management and financial health.
Peer comparison
May 31, 2024