Scholastic Corporation (SCHL)
Operating profit margin
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 18,700 | 14,500 | 106,300 | 97,400 | -10,900 |
| Revenue | US$ in thousands | 1,625,500 | 1,589,700 | 1,704,000 | 1,642,900 | 1,300,300 |
| Operating profit margin | 1.15% | 0.91% | 6.24% | 5.93% | -0.84% |
May 31, 2025 calculation
Operating profit margin = Operating income ÷ Revenue
= $18,700K ÷ $1,625,500K
= 1.15%
The operating profit margin of Scholastic Corporation has exhibited notable fluctuations over the period from May 31, 2021, to May 31, 2025. In the fiscal year ending May 31, 2021, the company reported a negative operating profit margin of approximately -0.84%, indicating that operational expenses exceeded gross profit, which may have been attributable to impairment charges, restructuring costs, or adverse market conditions impacting profitability.
By May 31, 2022, the operating profit margin improved significantly to approximately 5.93%, reflecting a transition to profitability from operations and suggesting enhanced operational efficiency or increased revenues relative to expenses. This positive trend continued into the fiscal year ending May 31, 2023, with the margin marginally increasing to approximately 6.24%, further substantiating the company's improved operational performance and cost management during this period.
However, the strong performance observed in 2022 and 2023 was not sustained into the subsequent fiscal year ending May 31, 2024, where the operating profit margin declined sharply to approximately 0.91%. This contraction indicates a significant reduction in operational profitability, which may result from increased operating costs, pricing pressures, or other external factors diminishing margins.
In the most recent fiscal year ending May 31, 2025, the operating profit margin increased slightly to approximately 1.15%, suggesting a modest recovery but remaining relatively close to break-even levels. The data indicates that while Scholastic Corporation managed to regain some operational profitability after the downturn in 2024, its margins continue to reflect relatively narrow operational profitability, with the company experiencing challenges that impede sustained high profitability levels.
Overall, the trend illustrates a period of turnaround from negative margins in 2021 to positive margins in subsequent years, followed by a notable decline, and a modest rebound, pointing to variability in operational performance and potential underlying factors affecting profitability.
Peer comparison
May 31, 2025