Scholastic Corporation (SCHL)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 124.08 | 137.51 | 141.35 | 154.37 | 131.13 | 137.76 | 147.99 | 167.01 | 155.25 | 169.67 | 173.75 | 178.15 | 134.18 | 147.90 | 142.52 | 160.81 | 147.70 | 175.17 | 166.45 | 160.04 |
| Days of sales outstanding (DSO) | days | 68.08 | 75.04 | 67.67 | 56.45 | 57.45 | 62.84 | 69.21 | 44.14 | 61.45 | 62.67 | 77.56 | 62.82 | 72.47 | 74.10 | 95.59 | 75.91 | 96.81 | 104.70 | 113.21 | 80.17 |
| Number of days of payables | days | 78.01 | 67.79 | 78.79 | 91.54 | 68.74 | 61.49 | 78.08 | 79.30 | 79.32 | 73.13 | 97.02 | 98.17 | 77.39 | 85.66 | 92.10 | 100.12 | 75.57 | 77.18 | 89.88 | 83.34 |
| Cash conversion cycle | days | 114.15 | 144.76 | 130.22 | 119.28 | 119.84 | 139.11 | 139.12 | 131.85 | 137.39 | 159.21 | 154.30 | 142.80 | 129.26 | 136.34 | 146.00 | 136.60 | 168.94 | 202.68 | 189.78 | 156.87 |
May 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 124.08 + 68.08 – 78.01
= 114.15
The analysis of Scholastic Corporation’s cash conversion cycle (CCC) over the specified periods reveals notable fluctuations and an overall trend toward reduction in the cycle duration. The CCC, which measures the time span between the cash outflows for inventory and the cash inflows from receivables, indicates the firm's efficiency in managing working capital and operational liquidity.
From August 31, 2020, when the CCC was approximately 156.87 days, there was an increasing trend peaking around February 28, 2021, at approximately 202.68 days. This suggests that during this period, the company experienced extended periods of inventory holding and receivables collection relative to payables, potentially highlighting challenges in inventory turnover or receivables management.
Subsequent periods show a fluctuating but generally decreasing trend from mid-2021 onward. By August 31, 2021, the CCC narrowed to around 136.60 days and remained relatively stable through the latter part of 2021. In 2022, the cycle further contracted, reaching a low of approximately 129.26 days on May 31, 2022. Although there was a slight increase to approximately 142.80 days in late 2022, the general trend from 2022 onwards indicates efforts toward improving working capital efficiency.
From February 28, 2023, onward, the CCC demonstrated a consistent downward trajectory, reaching a low of approximately 114.15 days on May 31, 2025. This declining trend signifies enhanced management of inventory, receivables, and payables, contributing to a shorter cash cycle and improved liquidity.
In summary, Scholastic Corporation has exhibited variability in its cash conversion cycle over the examined periods, with notable peaks in early 2021 and subsequent recoveries and improvements through 2022 and into 2025. The overall trend reflects a strategic move toward shortening the cycle, thus optimizing cash flow and operational efficiency over time.
Peer comparison
May 31, 2025