Scholastic Corporation (SCHL)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 946,500 | 1,018,100 | 1,164,500 | 1,218,400 | 1,182,300 |
| ROE | -0.20% | 1.19% | 7.43% | 6.65% | -0.92% |
May 31, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-1,900K ÷ $946,500K
= -0.20%
The provided data indicates that Scholastic Corporation's return on equity (ROE) experienced notable fluctuations over the analyzed period from May 31, 2021, to May 31, 2025.
In May 2021, the company's ROE was negative at -0.92%, suggesting that during that fiscal year, Scholastic either incurred a net loss or faced significant inefficiencies in generating profits relative to shareholder equity. This negative ROE point may reflect challenging market conditions, increased expenses, or other operational difficulties encountered during that period.
By May 2022, the ROE had improved substantially to 6.65%, moving into positive territory and indicating a turnaround in profitability and better utilization of equity capital. This positive shift may be attributed to improved revenues, cost controls, or strategic initiatives that enhanced the company's profit-generating capacity.
The upward trajectory continued into May 2023, with the ROE reaching 7.43%, which signifies further strengthening of operational performance and profitability. This level of ROE suggests that Scholastic was effectively deploying its equity to generate earnings, aligning with industry norms for a company in its sector.
However, by May 2024, the ROE sharply declined to 1.19%, reflecting a significant deterioration in return on shareholder equity. This decline might be related to decreased net income relative to equity, increased expenses, or other factors impacting profitability adversely during that fiscal year.
In the most recent period, May 2025, the ROE fell again into negative territory at -0.20%, indicating that the company returned to incurring losses or inefficiencies that outweigh its equity base. Such a negative ROE underscores potential operational or market challenges faced by Scholastic during this period.
Overall, the trend of Scholastic Corporation's ROE over these years demonstrates periods of recovery and growth punctuated by downturns. The company's profitability metrics have fluctuated from negative to positive territory and back, suggesting a cycle of operational challenges and recoveries that would benefit from further analysis to identify underlying causes and strategic responses.
Peer comparison
May 31, 2025