Scholastic Corporation (SCHL)
Cash ratio
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 124,000 | 113,700 | 224,500 | 316,600 | 366,500 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 626,400 | 534,700 | 340,000 | 619,700 | 695,500 |
| Cash ratio | 0.20 | 0.21 | 0.66 | 0.51 | 0.53 |
May 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($124,000K
+ $—K)
÷ $626,400K
= 0.20
The cash ratio of Scholastic Corporation has demonstrated notable fluctuations over the analyzed period from May 31, 2021, through May 31, 2025. As of May 31, 2021, the cash ratio stood at 0.53, indicating that the company's cash and cash equivalents covered approximately 53% of its current liabilities. This ratio experienced a slight decline in 2022, decreasing marginally to 0.51, which suggests a relatively stable short-term liquidity position during that period.
However, by May 31, 2023, the cash ratio increased to 0.66, reflecting an improvement in liquidity. This rise indicates that the company's cash holdings were able to cover around 66% of its current liabilities, potentially signaling enhanced liquidity management or reduced short-term obligations.
Following this peak, the cash ratio declined significantly in the subsequent years, reaching 0.21 by May 31, 2024, and slightly declining again to 0.20 by May 31, 2025. These levels suggest a substantial reduction in the company's cash holdings relative to its current liabilities, implying a tightened liquidity position. The marked decrease in the cash ratio indicates that Scholastic's ability to meet short-term obligations solely through cash and cash equivalents diminished during this period.
Overall, the trend depicts a period of relative stability in the early years, with an upward movement culminating in 2023, followed by a sharp decline in cash coverage during the subsequent two years. This pattern may reflect strategic changes in liquidity management, shifts in operating cash flows, or variations in working capital requirements. The declining cash ratio from 2023 onwards warrants further analysis to assess potential impacts on the company's financial stability and liquidity strategy.
Peer comparison
May 31, 2025