Scholastic Corporation (SCHL)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 54.72% | 54.85% | 53.92% | 54.10% | 53.74% | 54.45% | 54.66% | 53.77% | 53.85% | 53.22% | 53.26% | 52.81% | 53.41% | 51.70% | 51.10% | 49.69% | 48.74% | 46.31% | 47.44% | 49.85% |
| Operating profit margin | 1.13% | 1.78% | 1.12% | 2.77% | 2.12% | 3.63% | 4.04% | 3.91% | 6.24% | 4.72% | 5.15% | 4.33% | 5.93% | 2.72% | 2.52% | 0.17% | -1.75% | -6.64% | -8.95% | -3.95% |
| Pretax margin | -0.08% | -0.18% | -0.58% | 1.40% | 1.02% | 3.93% | 4.43% | 4.33% | 6.60% | 4.17% | 4.50% | 3.96% | 5.46% | 2.88% | 2.86% | 0.02% | -1.40% | -6.22% | -8.74% | -3.70% |
| Net profit margin | -0.12% | 1.17% | -0.27% | 1.49% | 0.76% | 3.16% | 3.59% | 3.44% | 5.06% | 3.71% | 3.90% | 3.63% | 4.91% | 2.37% | 2.58% | 0.33% | -0.84% | -2.67% | -4.77% | -1.71% |
The profitability ratios of Scholastic Corporation over the period from August 2020 through May 2025 demonstrate a trajectory of initial volatility followed by gradual improvement in profitability margins, albeit with some fluctuations recorded in recent periods.
The Gross Profit Margin exhibits a relatively stable upward trend, moving from approximately 49.85% in August 2020 to approximately 54.72% in May 2025. Despite minor dips, such as the low of 47.44% in November 2020, the company has maintained a generally increasing gross margin, achieving and surpassing the 54% threshold in the last recorded period. This pattern indicates an improved ability to retain revenue after cost of goods sold, reflecting either better pricing strategies, cost management, or product mix enhancements.
Operating profit margins, which suffered markedly at the start of the period, started negative in August 2020 (-3.95%) and worsened to -8.95% in November 2020. From this nadir, operating margins have shown signs of recovery, crossing into positive territory around August 2021 and gradually climbing to a peak of approximately 6.24% in May 2023. However, recent quarters have experienced contractions, with margins declining to approximately 1.13% by May 2025, and fluctuations persist, suggesting ongoing challenges in controlling operating expenses relative to revenue.
Pre-tax margins mirror the trend observed in operating margins, commencing negative during the early period (-3.70% in August 2020) and subsequently improving to positive margins, peaking at around 6.60% in May 2023. Recent figures indicate a retreat to near breakeven levels, with pre-tax margins hovering around negligible positives or slight negatives in the latest periods, reflecting narrower profit buffers before tax.
Net profit margins reveal a similar pattern of initial losses followed by recovery. The company experienced negative net margins from August 2020 through the first half of 2021, but achieved profitability by November 2021 with a net margin of approximately 2.58%. The net margin peaked at around 5.06% in May 2023, indicating a period of consistent profitability. However, recent data shows a decline, with margins falling back to near zero or marginally negative territory, such as -0.12% in May 2025, implying challenges in translating gross and operating profitability into net income profitability.
Overall, the analysis indicates that Scholastic Corporation experienced a period of significant profitability challenges during late 2020 and early 2021, largely reflected in negative operating, pre-tax, and net margins. Since then, there has been a constructive trend of margin recovery, with gross margins being relatively stable and above 50%, and operating, pre-tax, and net margins improving to positive levels. Nonetheless, recent fluctuations and marginal profit levels suggest ongoing pressures that may be attributable to operating costs, competitive dynamics, or other macroeconomic factors affecting the company’s bottom line.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | -0.09% | 0.95% | -0.21% | 1.21% | 0.69% | 3.03% | 3.22% | 3.24% | 4.62% | 3.34% | 3.28% | 3.09% | 4.16% | 1.87% | 1.90% | 0.23% | -0.54% | -1.55% | -2.90% | -1.22% |
| Return on total capital | 1.68% | 1.06% | -0.75% | 2.94% | 1.53% | 6.41% | 6.63% | 5.81% | 8.41% | 4.89% | 5.24% | 2.75% | 4.74% | 1.14% | 2.20% | 1.26% | 0.03% | -7.94% | -8.08% | -3.65% |
| Return on equity (ROE) | -0.20% | 1.98% | -0.44% | 2.49% | 1.19% | 5.20% | 5.48% | 5.45% | 7.41% | 5.45% | 5.48% | 5.12% | 6.62% | 3.06% | 3.12% | 0.39% | -0.92% | -2.69% | -5.14% | -2.19% |
The analysis of Scholastic Corporation's profitability ratios from August 2020 through May 2025 reveals a trajectory marked initially by significant negative returns, followed by periods of recovery and subsequent fluctuation.
Operating Return on Assets (Operating ROA):
During the initial period, Operating ROA was negative, with a low of -5.43% on November 30, 2020, indicating that core operations were not generating sufficient income to cover operating expenses. This negative trend persisted into early 2021, although there was an improvement from -2.83% on August 31, 2020, to -1.13% on May 31, 2021. Starting in late 2021, the ratio turned positive, reaching a peak of 5.69% on May 31, 2023, suggesting a substantial improvement in operational efficiency and profitability. However, this upward momentum experienced a decline in late 2023 and into 2024, with the ratio decreasing to as low as 0.87% in November 2024, before marginally recovering to 1.44% by February 2025. The overall pattern indicates a period of operational recovery following initial struggles.
Return on Assets (ROA):
This ratio followed a similar trend, beginning in negative territory with -2.90% in November 2020, and gradually improving into positive figures by November 2021. The peak was observed at 4.62% on May 31, 2023. Subsequently, ROA declined notably in late 2023 and during 2024, dipping below zero to -0.21% in November 2024, before a modest rebound to 0.95% in February 2025. The data suggests that while the company was able to generate profits from its assets consistently during the peak periods, recent performance has been relatively subdued.
Return on Total Capital:
This measure demonstrated a more variable but generally positive trend from late 2021 onward. The ratio transitioned from negative values in 2020 to positive territory by May 2021, reaching a high of 8.41% in May 2023. The subsequent decline into negative territory in late 2024 (-0.75%) indicates periods of diminished overall profitability in utilizing all capital, including debt and equity. The ratio showed partial recovery into positive figures of 1.06% by February 2025.
Return on Equity (ROE):
ROE, reflecting shareholder profitability, similarly improved from negative figures in 2020 to positive values in 2021 and 2022, with notable peaks of 7.41% in May 2023. The performance then deteriorated into negative territory in late 2024 (-0.44%) but recovered slightly to 1.98% by February 2025. The trends suggest that shareholder returns experienced periods of growth followed by decline correlating with broader profitability fluctuations.
Overall Summary:
Scholastic Corporation's profitability ratios depict an initial period of losses during 2020, consistent with the challenging early post-pandemic environment, transitioning into a phase of recovery and profitability gains through 2022 and into mid-2023. The peak in profitability metrics in mid-2023 indicates a period of strong operational and financial performance. However, the subsequent deterioration in late 2023 and 2024 reflects a decline in profitability, likely driven by internal or external factors affecting operational efficiencies or market conditions. Recent data shows signs of a modest recovery, although profitability remains variable, and the ratios have not returned to the levels seen during the peak period.