Scholastic Corporation (SCHL)
Financial leverage ratio
| 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 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,671,200 | 1,715,200 | 1,833,500 | 1,772,300 | 1,866,700 | 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 | 1,948,400 | 2,031,700 | 1,944,600 |
| Total stockholders’ equity | US$ in thousands | 1,018,100 | 997,600 | 1,079,100 | 1,054,600 | 1,162,900 | 1,148,400 | 1,216,500 | 1,164,800 | 1,217,000 | 1,183,800 | 1,208,800 | 1,148,300 | 1,180,800 | 1,175,400 | 1,186,400 | 1,146,000 | 1,179,200 | 1,197,900 | 1,260,000 | 1,195,400 |
| Financial leverage ratio | 1.64 | 1.72 | 1.70 | 1.68 | 1.61 | 1.63 | 1.67 | 1.66 | 1.59 | 1.64 | 1.64 | 1.68 | 1.70 | 1.73 | 1.78 | 1.79 | 1.72 | 1.63 | 1.61 | 1.63 |
May 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,671,200K ÷ $1,018,100K
= 1.64
The financial leverage ratio of Scholastic Corporation has shown some fluctuations over the past few years, ranging from 1.59 to 1.79. This ratio indicates the extent to which the company is using debt to finance its operations and assets. A higher financial leverage ratio typically suggests that a company is relying more on debt to fund its operations, which can pose risks in terms of financial stability and may increase the potential for financial distress during economic downturns.
Scholastic's financial leverage ratio has been hovering mostly between 1.60 and 1.70, indicating a moderate level of leverage over the analyzed period. It is important for the company to carefully manage its debt levels to ensure that it can meet its financial obligations and maintain a healthy balance sheet. Changes in the financial leverage ratio can impact the company's cost of capital, profitability, and overall financial health. Monitoring this ratio over time can provide insights into the company's capital structure and its ability to withstand economic challenges.
Peer comparison
May 31, 2024