Scholastic Corporation (SCHL)
Return on equity (ROE)
| 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 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 18,600 | -4,300 | 23,800 | 12,100 | 51,900 | 59,100 | 57,500 | 86,300 | 62,700 | 66,700 | 59,700 | 80,700 | 36,300 | 37,700 | 4,500 | -10,900 | -31,600 | -61,000 | -25,100 | -43,800 |
| Total stockholders’ equity | US$ in thousands | 941,300 | 986,000 | 957,300 | 1,018,100 | 997,600 | 1,079,100 | 1,054,600 | 1,164,500 | 1,149,900 | 1,216,500 | 1,166,300 | 1,218,400 | 1,185,300 | 1,210,000 | 1,148,300 | 1,182,300 | 1,176,800 | 1,187,900 | 1,147,400 | 1,180,600 |
| ROE | 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% | -3.71% |
February 28, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $18,600K ÷ $941,300K
= 1.98%
The analysis of Scholastic Corporation’s return on equity (ROE) over the observed period reveals significant fluctuations, reflecting underlying shifts in profitability, asset management, and financial leverage.
Initially, the ROE was negative at -3.71% as of May 31, 2020, indicating that the company was experiencing losses relative to shareholders’ equity during that period. This negative trend persisted into subsequent quarters, reaching its lowest point at -5.14% on November 30, 2020, which was likely influenced by adverse market conditions, operational challenges, or pandemic-related disruptions.
Progressively, the ROE demonstrated improvement beginning in early 2021, moving from -2.69% by February 28, 2021, to -0.92% as of May 31, 2021. Notably, the ROE transitioned into positive territory on August 31, 2021, at 0.39%, signaling a turning point where the company started generating net income sufficient to favorably impact shareholder returns. The upward trend continued steadily, with the ROE reaching 3.12% in November 2021, 3.06% in February 2022, and further expanding to 6.62% by May 2022.
Throughout 2022 and into 2023, the ROE maintained a relatively stable and positive trajectory, peaking at 7.41% on May 31, 2023, before slightly declining and stabilizing around 5.45% to 5.48% in the subsequent periods. This stabilization suggests that the company achieved a sustainable level of profitability relative to shareholders' equity during this phase.
However, the latest data indicates a decline in the ROE, with a notable decrease to 1.19% by May 2024. Subsequently, the ROE experienced fluctuations, increasing to 2.49% on August 31, 2024, then turning negative again at -0.44% by November 30, 2024. A partial recovery is observed with a value of 1.98% in February 2025, but the overall trend in the recent period points to increased volatility and challenges in maintaining consistent profitability.
In summary, Scholastic Corporation's ROE evolved from negative values during 2020 to positive levels by late 2021, experiencing periods of stability and growth through 2022 and early 2023. Nonetheless, recent data suggests a weakening in core profitability, accompanied by heightened variability in return metrics, which warrants further examination of underlying operational or market factors influencing performance.
Peer comparison
Feb 28, 2025