Scholastic Corporation (SCHL)
Financial leverage ratio
| May 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,040,400 | 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 |
| Total stockholders’ equity | US$ in thousands | 946,500 | 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 |
| Financial leverage ratio | 2.16 | 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 |
May 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,040,400K ÷ $946,500K
= 2.16
The financial leverage ratio of Scholastic Corporation has exhibited a generally upward trend over the analyzed period, reflecting incremental increases in the company’s use of debt relative to equity. Starting from approximately 1.79 on August 31, 2020, the ratio experienced a slight decline through 2021, reaching a low of about 1.64 by November 2021 and maintaining relative stability through early 2022. Subsequently, the ratio gradually increased from around 1.59 in May 2022 to approximately 1.68 by August 2023.
The most notable change occurred after this period, with a sharper rise beginning in late 2023. By November 2023, the ratio reached approximately 1.70, and subsequent data indicates a continuous increase, reaching 2.05 as of August 31, 2024. This upward trajectory persisted through late 2024 and into early 2025, culminating at approximately 2.16 by May 2025.
Overall, the pattern suggests a significant escalation in leverage in recent years, indicating that the company has increased its debt levels relative to shareholders' equity. This trend may reflect strategic decisions to finance growth, acquisitions, or operational needs through increased borrowing. The rising financial leverage warrants ongoing monitoring to assess its implications on the firm’s financial stability and risk profile, particularly in the context of broader market conditions and the company's ability to service its debt obligations.
Peer comparison
May 31, 2025