Scholastic Corporation (SCHL)
Net profit margin
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 12,100 | 86,300 | 80,900 | -11,000 | -43,800 |
| Revenue | US$ in thousands | 1,587,800 | 1,702,600 | 1,640,000 | 1,294,100 | 1,487,100 |
| Net profit margin | 0.76% | 5.07% | 4.93% | -0.85% | -2.95% |
May 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $12,100K ÷ $1,587,800K
= 0.76%
The net profit margin of Scholastic Corporation has exhibited fluctuations over the past five years. In May 2024, the net profit margin decreased to 0.76% from 5.07% in May 2023. This significant drop indicates a decrease in profitability relative to the previous year. In the preceding years, the company managed to maintain relatively stable net profit margins, with 4.93% in May 2022, -0.85% in May 2021, and -2.95% in May 2020.
The negative net profit margins in 2021 and 2020 are concerning as they indicate that the company's expenses exceeded its revenues during those periods. However, the positive net profit margins in 2022 and 2023 demonstrate stronger profitability levels. The recent decline in the net profit margin in 2024 suggests potential challenges in maintaining profitability.
It is crucial for Scholastic Corporation to closely monitor its cost management strategies, revenue streams, and operational efficiency to improve its net profit margin and ensure sustainable profitability in the future.
Peer comparison
May 31, 2024