Scholastic Corporation (SCHL)
Operating return on assets (Operating ROA)
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 18,300 | 28,300 | 17,700 | 44,300 | 33,700 | 59,700 | 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 |
| Total assets | US$ in thousands | 2,040,400 | 1,961,300 | 2,036,800 | 1,960,000 | 1,756,100 | 1,715,200 | 1,833,500 | 1,772,300 | 1,868,300 | 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 |
| Operating ROA | 0.90% | 1.44% | 0.87% | 2.26% | 1.92% | 3.48% | 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% |
May 31, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $18,300K ÷ $2,040,400K
= 0.90%
The analysis of Scholastic Corporation's operating return on assets (ROA) over the specified periods reveals a trend characterized by initial negative performance, subsequent gradual improvement, and subsequent fluctuations. During the fiscal periods ending August 31, 2020, and November 30, 2020, the operating ROA was notably negative at -2.83% and -5.43%, indicating the company was generating operating income insufficient to cover its assets, likely reflecting challenging business conditions or restructuring efforts during that time.
Progressing into 2021, there was a marked recovery, with the operating ROA moving towards positive territory, reaching -1.13% on May 31, 2021, and then crossing into positive figures with 0.12% on August 31, 2021. This positive trend persisted throughout 2022, with the operating ROA increasing to 2.14% on February 28, 2022, and further rising to a peak of 5.69% on May 31, 2023. This period signifies an improved operational efficiency and profitability, possibly driven by effective strategic initiatives, product success, or favorable market conditions.
However, starting in the latter half of 2023, the operating ROA experienced a decline, falling to 3.68% on August 31, 2023, and further decreasing to 0.87% by November 30, 2024. The trend continued into early 2025, with the figure remaining relatively low at around 1.44% on February 29, 2024, and subsequently declining to 0.90% on May 31, 2025.
Overall, the data indicates that Scholastic's operational efficiency, as measured by operating ROA, has experienced significant fluctuation over this period. The company showed a notable recovery following earlier losses, reaching a peak in mid-2022 and mid-2023, but subsequently faced declining profitability, which may suggest increased operational challenges or market pressures impacting asset utilization and operating income.
Peer comparison
May 31, 2025