Scholastic Corporation (SCHL)
Profitability ratios
Return on sales
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | -0.47% | 6.16% | 5.08% | -2.23% | -5.95% |
| Operating profit margin | 0.91% | 6.24% | 5.94% | -1.75% | -5.95% |
| Pretax margin | 1.02% | 6.59% | 5.46% | -1.41% | -6.04% |
| Net profit margin | 0.76% | 5.07% | 4.93% | -0.85% | -2.95% |
Scholastic Corporation's profitability ratios have shown fluctuating trends over the past five years. The gross profit margin, which indicates the efficiency of production and pricing strategies, has been inconsistent, ranging from negative values to low single-digit percentages. This may suggest challenges in managing production costs and pricing strategies.
The operating profit margin, which reflects the company's ability to control operating expenses, has also displayed variability over the period. While it improved in 2024 compared to the previous year, it has not shown a consistent positive trend.
The pretax margin, which represents the company's profitability before taxes, also shows fluctuations. Although it increased in 2024, it remains below the levels seen in 2022 and 2023, indicating potential challenges in generating profits before tax expenses.
Lastly, the net profit margin, which measures the company's profitability after all expenses have been deducted, shows inconsistent performance over the years. Although it improved in 2024 compared to the previous year, it remains below the levels observed in 2021 and 2022, indicating potential difficulties in generating bottom-line profits.
Overall, the profitability ratios of Scholastic Corporation suggest that the company has been facing challenges in maintaining consistent profitability levels, possibly due to fluctuations in costs, pricing strategies, and operational efficiencies. Further analysis of the company's financial performance and strategies may be needed to identify and address underlying reasons for these fluctuations.
Return on investment
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.87% | 5.69% | 5.02% | -1.13% | -4.35% |
| Return on assets (ROA) | 0.72% | 4.62% | 4.17% | -0.55% | -2.15% |
| Return on total capital | 1.78% | 9.77% | 7.60% | -1.02% | -6.25% |
| Return on equity (ROE) | 1.19% | 7.42% | 6.65% | -0.93% | -3.71% |
Scholastic Corporation's profitability ratios have shown fluctuations over the past five years. The Operating return on assets (Operating ROA) has varied from negative figures in 2020 and 2021 to positive percentages in the subsequent years, with the highest recorded at 5.69% in 2023 and the lowest at -4.35% in 2020. This metric indicates the company's ability to generate profits from its assets before interest and taxes.
The Return on assets (ROA) has followed a similar trend, ranging from negative values in 2020 and 2021 to positive figures in the following years. The highest ROA was recorded at 4.62% in 2023, and the lowest at -2.15% in 2020. This ratio reflects the company's efficiency in utilizing its total assets to generate earnings.
The Return on total capital has also exhibited fluctuations over the period, with the highest figure of 9.77% in 2023 and the lowest at -6.25% in 2020. This metric assesses the return generated from both debt and equity capital invested in the company.
Lastly, the Return on equity (ROE) portrays a similar pattern of variability, with the highest ROE of 7.42% in 2023 and the lowest at -3.71% in 2020. This ratio highlights the profitability generated for the shareholders' equity.
Overall, while the profitability ratios of Scholastic Corporation have displayed volatility, the company has shown an improvement in profitability in recent years, as reflected in the positive trends of these ratios from 2021 onwards.