Scholastic Corporation (SCHL)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 1,950,100 | 1,671,200 | 1,868,300 | 1,940,800 | 2,008,300 |
| Operating ROA | 0.96% | 0.87% | 5.69% | 5.02% | -0.54% |
May 31, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $18,700K ÷ $1,950,100K
= 0.96%
The operating return on assets (ROA) for Scholastic Corporation demonstrates significant fluctuations over the analyzed period from May 31, 2021, to May 31, 2025.
In fiscal year 2021, the operating ROA was negative at -0.54%, indicating that the company's operations were insufficient to generate positive returns relative to its assets during that period. This negative figure suggests operational challenges or inefficiencies that impacted profitability.
By fiscal year 2022, there was a notable improvement as the operating ROA shifted into positive territory at 5.02%. This turnaround indicates enhanced operational performance and a more effective utilization of assets to generate earnings from core activities.
This positive trend continued into fiscal year 2023, with the operating ROA rising slightly to 5.69%, reflecting further operational efficiency gains or revenue growth relative to assets. The continued improvement suggests sustained performance enhancements throughout this period.
However, in the subsequent year, fiscal year 2024, the operating ROA declined sharply to 0.87%. This significant decrease indicates a reduction in operational efficiency or profitability from core activities, potentially due to increased operating costs, decreased revenue, or strategic adjustments.
In fiscal year 2025, the operating ROA showed a modest recovery to 0.96%. Despite the slight uptick, the figure remains substantially lower than the peak observed in 2023, indicating that the company's operational performance remains subdued compared to previous years.
Overall, the trajectory of Scholastic's operating ROA reveals a period of initial challenges culminating in negative performance, a marked recovery with positive ratios in 2022 and 2023, followed by a decline in 2024 and minimal improvement in 2025. This pattern underscores periods of operational volatility, highlighting the importance of strategic initiatives to sustain profitability and asset efficiency in the future.
Peer comparison
May 31, 2025