Scholastic Corporation (SCHL)
Cash ratio
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 113,700 | 224,500 | 316,600 | 366,500 | 393,800 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 534,700 | 602,300 | 619,700 | 695,500 | 501,500 |
| Cash ratio | 0.21 | 0.37 | 0.51 | 0.53 | 0.79 |
May 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($113,700K
+ $—K)
÷ $534,700K
= 0.21
The cash ratio of Scholastic Corporation has shown a declining trend over the past five years, decreasing from 0.79 in 2020 to 0.21 in 2024. This indicates that the company's ability to cover its short-term liabilities with cash and cash equivalents has weakened over this period.
A cash ratio of 0.21 in 2024 implies that for every dollar of current liabilities, the company has only $0.21 in cash and cash equivalents available for immediate payment. This suggests a potential liquidity challenge if Scholastic is required to meet its short-term obligations quickly.
The decreasing trend in the cash ratio may raise concerns about the company's liquidity management and its ability to weather unexpected financial challenges. It is important for stakeholders to closely monitor this trend and assess the company's cash management strategies to ensure stability and financial health in the future.
Peer comparison
May 31, 2024