Scholastic Corporation (SCHL)
Operating return on assets (Operating ROA)
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 14,500 | 59,300 | 66,500 | 65,300 | 106,300 | 79,800 | 88,000 | 71,300 | 97,400 | 41,600 | 36,900 | 2,300 | -22,700 | -78,600 | -114,400 | -58,100 | -88,500 | -10,300 | 28,300 | 21,400 |
| Total assets | US$ in thousands | 1,671,200 | 1,715,200 | 1,833,500 | 1,772,300 | 1,866,700 | 1,877,500 | 2,034,000 | 1,931,700 | 1,940,800 | 1,940,500 | 1,980,700 | 1,925,300 | 2,008,300 | 2,035,000 | 2,106,900 | 2,056,300 | 2,033,600 | 1,948,400 | 2,031,700 | 1,944,600 |
| Operating ROA | 0.87% | 3.46% | 3.63% | 3.68% | 5.69% | 4.25% | 4.33% | 3.69% | 5.02% | 2.14% | 1.86% | 0.12% | -1.13% | -3.86% | -5.43% | -2.83% | -4.35% | -0.53% | 1.39% | 1.10% |
May 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $14,500K ÷ $1,671,200K
= 0.87%
Operating return on assets (operating ROA) is a key financial ratio that measures a company's ability to generate operating income from its assets. The trend analysis of Scholastic Corporation's operating ROA reveals fluctuations over the past few quarters.
In the most recent period ending May 31, 2024, the operating ROA stands at 0.87%, showing a substantial decline from the previous quarter's figure of 3.46%. This decrease indicates that the company's operating income generated from its assets has decreased, which could be a cause for concern.
Looking back over the last few quarters, we observe a general trend of volatility in Scholastic Corporation's operating ROA. While there have been periods of improvement, such as the peak of 5.69% in the quarter ending May 31, 2023, there have also been periods of decline, with negative figures reported in some periods like the quarter ending February 28, 2021.
Overall, the fluctuating pattern in Scholastic Corporation's operating ROA suggests varying operational efficiency and asset utilization. It is essential for the company to focus on enhancing profitability by efficiently utilizing its assets to generate more operating income. Further analysis of the factors contributing to the changes in operating ROA is recommended to understand the underlying reasons for the fluctuations and to implement strategies for improvement.
Peer comparison
May 31, 2024