Scholastic Corporation (SCHL)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,961,300 | 2,036,800 | 1,960,000 | 1,756,100 | 1,715,200 | 1,833,500 | 1,772,300 | 1,868,300 | 1,877,500 | 2,034,000 | 1,931,700 | 1,940,800 | 1,940,500 | 1,980,700 | 1,925,300 | 2,008,300 | 2,035,000 | 2,106,900 | 2,056,300 | 2,033,600 |
| 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 |
| Financial leverage ratio | 2.08 | 2.07 | 2.05 | 1.72 | 1.72 | 1.70 | 1.68 | 1.60 | 1.63 | 1.67 | 1.66 | 1.59 | 1.64 | 1.64 | 1.68 | 1.70 | 1.73 | 1.77 | 1.79 | 1.72 |
February 28, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,961,300K ÷ $941,300K
= 2.08
The financial leverage ratio of Scholastic Corporation has exhibited a generally upward trend over the analyzed period, indicating evolving levels of debt relative to equity. Initially, on May 31, 2020, the ratio stood at approximately 1.72, suggesting that the company employed a moderate level of leverage. Throughout 2020 and into early 2021, the ratio displayed minor fluctuations, reaching peaks of 1.79 in August 2020 and maintaining around 1.77 on November 30, 2020. This stability indicates a consistent leverage position during that phase.
In 2021, the ratio gradually declined, reaching a low of 1.64 by November 30 and February 28, 2022, signifying a modest reduction in leverage. The subsequent period shows a gradual decrease to about 1.59 on May 31, 2022, followed by slight increases to approximately 1.66-1.67 by late 2022. This indicates periods of slight leverage stabilization and marginal increases, reflecting cautious leverage management.
From mid-2023 onward, there is a noticeable upward trajectory. The ratio increased from around 1.60 on May 31, 2023, to 1.68 on August 31, 2023, and further to 1.70 by November 30, 2023. The trend accelerates in the subsequent months, reaching 2.05 on August 31, 2024, and continuing upward to 2.07 by November 30, 2024, and 2.08 on February 28, 2025. These increases suggest a significant rise in leverage, implying that the company has taken on additional debt relative to equity in recent periods.
Overall, the historical data indicates that Scholastic Corporation has maintained a relatively moderate level of leverage characterized by fluctuations within the range of approximately 1.50 to 1.80 for most of the period. However, commencing around mid-2023, there is a clear shift toward higher leverage levels, culminating in ratios exceeding 2.0 by late 2024 and early 2025. This pattern suggests a strategic increase in debt, which could be aimed at funding growth initiatives, acquisitions, or other capital expenditures, but also warrants caution regarding the associated financial risk.
Peer comparison
Feb 28, 2025