Scholastic Corporation (SCHL)

The current ratio of Scholastic Corporation has demonstrated a generally positive trend over the observed period from May 31, 2021, to May 31, 2025. As of May 31, 2021, the current ratio was recorded at 1.48, indicating that the company's current assets were 1.48 times its current liabilities, thus reflecting a reasonable level of liquidity. This ratio increased to 1.61 by May 31, 2022, and further to 1.64 by May 31, 2023, suggesting an improvement in short-term liquidity and an enhanced ability to meet its short-term obligations.

However, after reaching its peak in 2023, the current ratio experienced a decline, dropping to 1.27 on May 31, 2024. This decrease indicates a reduction in relative liquidity, potentially due to a relative decrease in current assets, an increase in current liabilities, or a combination of both. The downward trend continued as of May 31, 2025, with the ratio declining further to 1.16, bringing it closer to the generally accepted threshold of 1.0, which indicates a marginal ability to cover short-term liabilities with current assets.

Overall, the pattern suggests that Scholastic Corporation experienced a period of increasing liquidity from 2021 through 2023, followed by a deterioration in its short-term liquidity position over the subsequent two years. While the current ratio remained above 1.0 throughout the period, the decreasing trend toward 1.16 signals a potential need for close monitoring of liquidity management to ensure sufficient short-term financial health.

Peer comparison

May 31, 2025