Scholastic Corporation (SCHL)
Financial leverage ratio
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,950,100 | 1,671,200 | 1,868,300 | 1,940,800 | 2,008,300 |
| Total stockholders’ equity | US$ in thousands | 946,500 | 1,018,100 | 1,164,500 | 1,218,400 | 1,182,300 |
| Financial leverage ratio | 2.06 | 1.64 | 1.60 | 1.59 | 1.70 |
May 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,950,100K ÷ $946,500K
= 2.06
The financial leverage ratio of Scholastic Corporation has demonstrated a relatively stable yet gradually fluctuating trend over the analyzed period from May 31, 2021, to May 31, 2025. Specifically, on May 31, 2021, the ratio stood at 1.70, indicating a moderate level of debt relative to equity. By May 31, 2022, the ratio had decreased to 1.59, suggesting a slight reduction in leverage, possibly due to debt repayment or equity expansion. The ratio remained relatively stable at 1.60 through May 31, 2023, reflecting continued stability in leverage levels during this period. A slight increase was observed by May 31, 2024, when the ratio rose to 1.64, indicating a marginal increase in debt compared to equity. The most notable change occurred by May 31, 2025, when the ratio increased significantly to 2.06, signaling a considerable escalation in leverage. This upward trend may imply a strategic decision to utilize increased borrowing to finance growth initiatives or acquisitions, potentially elevating the company's financial risk profile. Overall, the data indicates a pattern of moderate leverage remaining relatively consistent until a sharp rise in 2025, which warrants attention to the company's debt management and risk exposure strategies.
Peer comparison
May 31, 2025