Scholastic Corporation (SCHL)
Quick ratio
| 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 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 94,700 | 139,600 | 84,100 | 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 |
| Short-term investments | US$ in thousands | — | — | 900 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 327,300 | 293,000 | 247,200 | 250,200 | 282,900 | 311,800 | 201,900 | 286,900 | 290,200 | 363,300 | 283,300 | 326,200 | 310,600 | 383,100 | 279,700 | 344,900 | 339,300 | 396,600 | 322,800 | 329,800 |
| Total current liabilities | US$ in thousands | 616,700 | 655,800 | 628,400 | 534,700 | 608,500 | 636,700 | 598,700 | 340,000 | 636,900 | 724,700 | 668,300 | 619,700 | 659,200 | 671,700 | 661,600 | 695,500 | 730,000 | 606,600 | 563,500 | 501,500 |
| Quick ratio | 0.68 | 0.66 | 0.53 | 0.68 | 0.65 | 0.72 | 0.55 | 1.50 | 0.77 | 0.86 | 0.78 | 1.04 | 0.94 | 1.02 | 0.89 | 1.02 | 0.95 | 1.24 | 1.20 | 1.44 |
February 28, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($94,700K
+ $—K
+ $327,300K)
÷ $616,700K
= 0.68
The analysis of Scholastic Corporation's quick ratio over the period from May 2020 to February 2025 reveals noteworthy trends and fluctuations, reflecting both short-term liquidity positioning and strategic shifts within the company.
Initially, in May 2020, the quick ratio stood at 1.44, indicating a robust liquidity position with sufficient liquid assets to cover current liabilities. This ratio experienced a decline over the subsequent months, reaching a low of approximately 0.55 by August 2023. This downward trend suggests a reduction in liquid assets relative to current liabilities, possibly due to strategic asset allocations, operational changes, or shifting liquidity management practices.
Notably, there was a significant increase in the quick ratio in May 2023, rising to 1.50. This improvement indicates an enhanced liquidity position, potentially driven by reallocation of liquid assets or improved short-term financial health. However, this peak was followed by a decline to 0.55 by August 2023, before showing signs of stabilization and modest recovery through late 2023 and into 2024, with ratios oscillating between approximately 0.53 and 0.72.
Throughout the observed period, the quick ratio predominantly remains below 1.0 during several intervals, particularly from August 2021 onwards, indicating that liquid assets were often insufficient to fully cover current liabilities. Such a trend may highlight periods of increased operational pressures or liquidity constraints.
Overall, the fluctuation in the quick ratio underscores variability in Scholastic Corporation’s liquidity position, with periods of strength interspersed with phases of potential liquidity tightening. The relatively low ratios observed in the most recent periods may warrant careful liquidity management and strategic planning to ensure short-term financial stability.
Peer comparison
Feb 28, 2025