Scholastic Corporation (SCHL)
Financial leverage ratio
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,671,200 | 1,866,700 | 1,940,800 | 2,008,300 | 2,033,600 |
| Total stockholders’ equity | US$ in thousands | 1,018,100 | 1,162,900 | 1,217,000 | 1,180,800 | 1,179,200 |
| Financial leverage ratio | 1.64 | 1.61 | 1.59 | 1.70 | 1.72 |
May 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,671,200K ÷ $1,018,100K
= 1.64
The financial leverage ratio for Scholastic Corporation has exhibited fluctuations over the past five years. In 2024, the ratio stands at 1.64, which indicates that the company's reliance on debt to finance its operations has increased compared to the previous year. This may suggest that Scholastic Corporation has taken on more debt to support its growth or operational needs.
Looking back, the trend shows a slight increase in the financial leverage ratio from 1.59 in 2022 to 1.72 in 2020, followed by a decrease to 1.61 in 2023. The higher ratios in 2020 and 2021 indicate higher levels of debt relative to equity, potentially signaling higher financial risk and leverage for the company during those years.
It is essential for stakeholders to monitor Scholastic Corporation's financial leverage ratio closely to assess the company's ability to meet its debt obligations and manage its financial risk effectively. An increasing trend in the ratio may indicate a growing reliance on debt financing, which could impact the company's financial stability and profitability in the long run.
Peer comparison
May 31, 2024