Scholastic Corporation (SCHL)
Return on total capital
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 18,100 | 113,600 | 92,500 | -12,100 | -86,800 |
| Long-term debt | US$ in thousands | 0 | 0 | 0 | 7,300 | 210,600 |
| Total stockholders’ equity | US$ in thousands | 1,018,100 | 1,162,900 | 1,217,000 | 1,180,800 | 1,179,200 |
| Return on total capital | 1.78% | 9.77% | 7.60% | -1.02% | -6.25% |
May 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $18,100K ÷ ($0K + $1,018,100K)
= 1.78%
Scholastic Corporation's return on total capital has exhibited fluctuating performance over the past five years. In the most recent fiscal year ending May 31, 2024, the company achieved a return on total capital of 1.78%, reflecting a decrease compared to the previous year. The positive return indicates that Scholastic Corporation generated a modest profit relative to the total capital employed in its operations.
Looking back, the company's return on total capital was notably higher in the fiscal years ending May 31, 2023 and May 31, 2022, standing at 9.77% and 7.60%, respectively. These years were characterized by more efficient utilization of total capital to generate profits, representing strong performance.
In contrast, Scholastic Corporation experienced negative returns on total capital in the fiscal years ending May 31, 2021 and May 31, 2020, with figures of -1.02% and -6.25%, respectively. These negative returns indicate that the company's capital investments did not generate profits during those periods.
Overall, Scholastic Corporation's return on total capital has shown variability, with both positive and negative trends observed in recent years. It is important for the company to consistently improve its capital efficiency and profitability to enhance shareholder value and financial performance.
Peer comparison
May 31, 2024