Scholastic Corporation (SCHL)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.08 | 0.10 | 0.10 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 | 0.13 | 0.15 | 0.15 | 0.01 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 | 0.15 | 0.17 | 0.18 | 0.01 | 0.00 | 0.00 |
| 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 |
The solvency ratios of Scholastic Corporation, including the debt-to-assets ratio, debt-to-capital ratio, debt-to-equity ratio, and financial leverage ratio, provide insight into the company's ability to meet its financial obligations and manage its debt levels.
The debt-to-assets ratio, which indicates the proportion of the company's assets funded by debt, has consistently been reported as 0.00 across the periods analyzed. This suggests that Scholastic Corporation has not relied on debt financing to support its asset base during these periods.
Similarly, the debt-to-capital ratio, showing the extent to which debt contributes to the company's capital structure, has also remained at 0.00 over the periods examined. This indicates that the company has predominantly financed its operations and investments through equity rather than debt.
Moreover, the debt-to-equity ratio, demonstrating the relationship between debt and shareholders' equity, has consistently been reported as 0.00, further highlighting Scholastic Corporation's reliance on equity financing over debt financing.
The financial leverage ratio, reflecting the company's level of financial leverage or debt utilization, has ranged from 1.59 to 1.79 across the periods studied. Despite slight fluctuations, the values have generally been within a reasonable range, indicating that Scholastic Corporation has maintained a stable capital structure with a moderate level of financial leverage.
Overall, based on these solvency ratios, Scholastic Corporation appears to have a conservative approach to debt management, relying more on equity financing to support its operations and investments. This has contributed to a relatively stable financial position and a manageable level of financial leverage over the periods analyzed.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 6.04 | 9.88 | 9.78 | 9.20 | 18.02 | 31.92 | 58.67 | 54.85 | 40.58 | 10.67 | 7.10 | 0.39 | -3.91 | -15.72 | -31.78 | -24.21 | -46.58 | -4.90 | 10.11 | 6.48 |
The interest coverage ratio for Scholastic Corporation fluctuated significantly over the 2019-2024 period. It peaked at 58.67 in November 2022, indicating the company's strong ability to cover its interest expenses with its operating income. This high ratio suggests a healthy financial position and indicates that the company had ample earnings to meet its interest obligations.
However, the interest coverage ratio declined sharply in subsequent periods, with notable decreases in the following quarters. The ratio turned negative in the most recent quarters, indicating that the company's operating income was insufficient to cover its interest expenses. A negative interest coverage ratio is a concerning sign, as it implies financial distress and a potential inability to meet debt obligations.
Overall, based on the trend observed, it appears that Scholastic Corporation's ability to cover its interest expenses has deteriorated in recent quarters, raising concerns about its financial health and ability to service its debt. Further analysis and monitoring of the company's financial performance and debt management strategies would be recommended.