Scholastic Corporation (SCHL)
Quick ratio
| May 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 124,000 | 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 |
| Short-term investments | US$ in thousands | — | — | — | 900 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 303,200 | 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 |
| Total current liabilities | US$ in thousands | 626,400 | 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 |
| Quick ratio | 0.68 | 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 |
May 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($124,000K
+ $—K
+ $303,200K)
÷ $626,400K
= 0.68
The quick ratio of Scholastic Corporation demonstrates significant fluctuations over the reported periods, indicating variability in its short-term liquidity position. Throughout the period from August 2020 to May 2025, the ratio has ranged from a high of 1.50 in May 2023 to a low of 0.53 in August 2024.
Initially, the quick ratio remained above 1.0 in several periods, such as August 2020 (1.20), November 2020 (1.24), and subsequent quarters, reflecting a generally favorable liquidity position with sufficient liquid assets to cover current liabilities. The ratio experienced a decline in early 2021, dropping below 1.0 in February 2021 (0.95) and further decreasing to 0.89 in August 2021, indicating a reduced ability to meet short-term obligations without relying on inventory.
Between August 2021 and August 2022, the ratio fluctuated modestly around the 0.78 to 1.04 range, suggesting periods of both improved and weakened liquidity. Particularly noteworthy is the peak of 1.50 recorded in May 2023, which signifies a notably strong position in that period, potentially due to increased liquid assets or decreased current liabilities.
Subsequent periods show a decline in the ratio, with August 2023 registering a lower figure of 0.55, the lowest in the sample, which indicates a significant reduction in liquidity. Although there was a slight recovery to 0.72 by November 2023 and small increases thereafter, the ratio remained below 1.0 through most of 2023 and into 2024.
In the most recent data points, from February 2024 to May 2025, the quick ratio stabilized around 0.65 to 0.68, reflecting a consistent but below-ideal liquidity position. A ratio consistently under 1.0 suggests the company's liquid assets are insufficient to cover immediate liabilities without liquidating inventories or securing additional financing.
Overall, Scholastic Corporation’s quick ratio reveals periods of both liquidity strength and weakness, with a tendency towards lower ratios in recent periods, which warrants closer monitoring of liquidity management to ensure short-term obligations can be met without compromising operational stability.
Peer comparison
May 31, 2025