Scholastic Corporation (SCHL)
Return on assets (ROA)
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -1,900 | 12,100 | 86,500 | 81,000 | -10,900 |
| Total assets | US$ in thousands | 1,950,100 | 1,671,200 | 1,868,300 | 1,940,800 | 2,008,300 |
| ROA | -0.10% | 0.72% | 4.63% | 4.17% | -0.54% |
May 31, 2025 calculation
ROA = Net income ÷ Total assets
= $-1,900K ÷ $1,950,100K
= -0.10%
The analysis of Scholastic Corporation's return on assets (ROA) over the specified period reveals a pattern characterized by fluctuations that reflect the company's changing profitability relative to its total assets. As of May 31, 2021, the ROA was negative at -0.54%, indicating that the firm was experiencing losses or insufficient earnings to generate a positive return on its asset base during that fiscal year. This negative ROA may suggest operational challenges or adverse market conditions affecting profitability at that time.
By May 31, 2022, the ROA improved significantly to 4.17%, transitioning into positive territory. This notable increase suggests a period of enhanced operational efficiency, improved revenue generation, or cost management that allowed the company to generate returns on its assets beyond breakeven. The upward trend continued into May 31, 2023, with the ROA reaching 4.63%, indicating sustained improvement in asset utilization and profitability.
However, in the subsequent fiscal year ending May 31, 2024, the ROA declined sharply to 0.72%. Although still positive, this substantial decrease from the previous year signals potential challenges in maintaining previous levels of profitability, which might have resulted from increased costs, changes in revenue streams, or other operational factors impacting asset efficiency.
Looking ahead to May 31, 2025, the ROA turned negative again at -0.10%. This slight decline back into negative territory suggests that the company's profitability relative to its assets has diminished, potentially highlighting ongoing or emerging financial pressures that reduce overall asset productivity. The marginal negative figure indicates a very narrow loss, which may warrant attention but also demonstrates that the company remains close to breakeven.
Overall, the ROA trend over the analyzed period reflects significant volatility, with phases of recovery and deterioration. The company experienced a transition from a loss in 2021 to profitability in subsequent years, followed by a decline and return to marginal losses. These fluctuations could be associated with broader economic factors, strategic shifts, or sector-specific dynamics impacting Scholastic's operational performance.
Peer comparison
May 31, 2025