Scholastic Corporation (SCHL)
Pretax margin
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 16,200 | 112,200 | 89,600 | -18,300 | -89,800 |
| Revenue | US$ in thousands | 1,587,800 | 1,702,600 | 1,640,000 | 1,294,100 | 1,487,100 |
| Pretax margin | 1.02% | 6.59% | 5.46% | -1.41% | -6.04% |
May 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $16,200K ÷ $1,587,800K
= 1.02%
Scholastic Corporation's pretax margin has fluctuated over the past five years. In the most recent fiscal year ending May 31, 2024, the company's pretax margin was 1.02%, which represents a decline from the previous year's pretax margin of 6.59%. This decrease indicates a reduction in the percentage of pre-tax profits generated from the company's total revenue in the most recent year.
Comparing the pretax margin to two years prior, we observe that Scholastic Corporation's performance has improved, with the pretax margin increasing from 5.46% in May 2022 to 1.02% in May 2024. However, it is important to note that in May 2021 and May 2020, the company experienced negative pretax margins of -1.41% and -6.04% respectively.
Overall, the trend in Scholastic Corporation's pretax margin indicates some volatility in its profitability performance over the past five years, with fluctuations between positive and negative margins. It would be beneficial for the company to assess the factors influencing these fluctuations and implement strategies to stabilize and enhance its profitability in the future.
Peer comparison
May 31, 2024