Scholastic Corporation (SCHL)
Operating return on assets (Operating ROA)
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 14,500 | 106,300 | 97,400 | -22,700 | -88,500 |
| Total assets | US$ in thousands | 1,671,200 | 1,866,700 | 1,940,800 | 2,008,300 | 2,033,600 |
| Operating ROA | 0.87% | 5.69% | 5.02% | -1.13% | -4.35% |
May 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $14,500K ÷ $1,671,200K
= 0.87%
Scholastic Corporation's operating return on assets (ROA) has fluctuated over the past five years, as evidenced by the data provided. In particular, the operating ROA stood at 0.87% for the fiscal year ending May 31, 2024, which represents a significant decrease from the previous year's figure of 5.69%. This decline indicates a decrease in the company's ability to generate operating profit from its assets.
Looking at the trend over the five-year period, Scholastic Corporation experienced a positive operating ROA in the fiscal years ending May 31, 2023 and May 31, 2022, with figures of 5.69% and 5.02%, respectively. These results suggest that the company was efficient in utilizing its assets to generate operating income during these years.
However, in the fiscal years ending May 31, 2021 and May 31, 2020, Scholastic Corporation reported negative operating ROA figures of -1.13% and -4.35%, respectively. These negative values indicate that the company's operating income was insufficient to cover its asset base during these periods, which can be a cause for concern.
In conclusion, Scholastic Corporation's operating ROA has shown variability over the past five years, indicating fluctuations in the company's operational efficiency and profitability in relation to its assets. Further analysis of the factors influencing these fluctuations would be necessary to provide a more in-depth understanding of the company's financial performance.
Peer comparison
May 31, 2024