Scholastic Corporation (SCHL)
Cash conversion cycle
| 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 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 60.45 | 65.10 | 69.93 | 80.36 | 76.42 | 82.72 | 85.03 | 87.25 | 65.98 | 74.16 | 72.23 | 81.94 | 75.24 | 88.19 | 80.30 | 77.21 | 62.69 | 66.69 | 80.01 | 89.46 |
| Days of sales outstanding (DSO) | days | 57.52 | 62.89 | 71.81 | 51.45 | 61.51 | 62.61 | 77.57 | 62.88 | 72.60 | 74.51 | 96.11 | 76.34 | 97.28 | 104.70 | 113.21 | 80.17 | 80.95 | 61.32 | 71.46 | 49.47 |
| Number of days of payables | days | 31.69 | 29.06 | 36.90 | 38.15 | 39.04 | 35.66 | 47.48 | 48.08 | 38.05 | 42.95 | 46.68 | 51.02 | 38.50 | 38.86 | 43.36 | 40.21 | 35.58 | 40.72 | 42.24 | 50.18 |
| Cash conversion cycle | days | 86.28 | 98.94 | 104.84 | 93.65 | 98.88 | 109.68 | 115.12 | 102.05 | 100.52 | 105.72 | 121.66 | 107.26 | 134.02 | 154.03 | 150.15 | 117.17 | 108.05 | 87.28 | 109.22 | 88.75 |
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 of Scholastic Corporation demonstrates fluctuations over the past few years. The company's cash conversion cycle reflects the time taken to convert its investments in inventory into cash received from sales.
On average, Scholastic Corporation's cash conversion cycle has been around 100 days, indicating that it takes approximately 100 days for the company to convert its investment in inventory back into cash from sales.
In the most recent period of May 31, 2024, the cash conversion cycle decreased to 86.28 days compared to the previous periods, which may signify an improvement in the company's efficiency in managing its working capital. Conversely, in the previous periods of Nov 30, 2021, and May 31, 2021, the cash conversion cycle was considerably longer at 121.66 days and 134.02 days, respectively.
Overall, Scholastic Corporation's management should continue to monitor and optimize its cash conversion cycle to ensure efficient use of its resources and enhance its cash flow management.
Peer comparison
May 31, 2024