Scholastic Corporation (SCHL)
Pretax margin
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -1,300 | 16,200 | 112,400 | 89,700 | -18,200 |
| Revenue | US$ in thousands | 1,625,500 | 1,589,700 | 1,704,000 | 1,642,900 | 1,300,300 |
| Pretax margin | -0.08% | 1.02% | 6.60% | 5.46% | -1.40% |
May 31, 2025 calculation
Pretax margin = EBT ÷ Revenue
= $-1,300K ÷ $1,625,500K
= -0.08%
The pretax margin of Scholastic Corporation has exhibited notable fluctuations over the analyzed period from May 31, 2021, to May 31, 2025. In the fiscal year ending May 31, 2021, the pretax margin was negative at -1.40%, indicating that the company was incurring losses before tax during that period. This negative margin reflects either operating inefficiencies, increased costs, or declining revenues that adversely impacted profitability.
By the subsequent year ending May 31, 2022, the pretax margin improved significantly to 5.46%. This positive shift suggests a turnaround in operational performance, possibly driven by increased revenues, cost control measures, or a combination of factors that enhanced profitability on a pretax basis.
The positive trend continued into the fiscal year ending May 31, 2023, with the pretax margin reaching 6.60%, which indicates further strengthening of the company's profitability before tax. This peak may point to successful strategic initiatives, sales growth, or favorable market conditions that contributed to improved earnings relative to revenue.
However, the margin declined substantially to 1.02% for the fiscal year ending May 31, 2024. Such a sharp reduction signifies a pronounced deterioration in profitability, potentially due to increased expenses, lower revenues, or external market pressures impacting the company’s earnings before tax.
Finally, in the fiscal year ending May 31, 2025, the pretax margin slightly reverted to a negative figure of -0.08%. This near-zero but negative margin indicates a return to losses on a pretax basis, suggesting ongoing challenges in maintaining profitability or possible increased costs offsetting revenues.
Overall, Scholastic Corporation's pretax margin demonstrates significant volatility across the five-year period, moving from losses to profits and back to near break-even or slight losses. This pattern highlights underlying operational or market-related challenges and the company's variable ability to generate profit before tax in different fiscal situations.
Peer comparison
May 31, 2025