Scholastic Corporation (SCHL)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 113,700 | 110,400 | 149,500 | 125,800 | 224,500 | 198,800 | 261,100 | 239,700 | 316,600 | 308,900 | 300,700 | 308,600 | 366,500 | 353,200 | 356,600 | 355,500 | 393,800 | 263,800 | 277,800 | 199,400 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 534,700 | 608,500 | 636,700 | 598,700 | 602,300 | 636,900 | 724,700 | 668,300 | 619,700 | 659,200 | 671,700 | 661,600 | 695,500 | 730,000 | 606,600 | 563,500 | 501,500 | 630,300 | 650,700 | 625,400 |
| Cash ratio | 0.21 | 0.18 | 0.23 | 0.21 | 0.37 | 0.31 | 0.36 | 0.36 | 0.51 | 0.47 | 0.45 | 0.47 | 0.53 | 0.48 | 0.59 | 0.63 | 0.79 | 0.42 | 0.43 | 0.32 |
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 fluctuated over the past several periods, ranging from a low of 0.18 to a high of 0.79. The cash ratio measures the company's ability to cover its short-term obligations with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term liabilities, while a lower ratio could signal potential liquidity problems.
In the most recent period, the cash ratio was 0.21, indicating that Scholastic Corporation had $0.21 in cash and cash equivalents for every $1 of current liabilities. This ratio has been relatively stable around the 0.2 to 0.3 range over the last few periods.
It is important to note that while a high cash ratio may seem favorable, holding excess cash can also result in missed investment opportunities or lower returns. On the other hand, a low cash ratio may signal that the company is not effectively managing its liquidity and may struggle to meet its short-term obligations.
Overall, the trend in Scholastic Corporation's cash ratio indicates that the company has maintained a reasonable level of liquidity to cover its short-term liabilities, but further analysis of its cash management strategies and overall financial health would be necessary to gain a more complete understanding of its financial position.
Peer comparison
May 31, 2024