Worthington Industries Inc (WOR)
Fixed asset turnover
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,916,390 | 5,242,220 | 3,171,430 | 3,059,120 | 3,759,560 |
| Property, plant and equipment | US$ in thousands | 256,415 | 696,340 | 515,017 | 572,644 | 578,664 |
| Fixed asset turnover | 19.17 | 7.53 | 6.16 | 5.34 | 6.50 |
May 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,916,390K ÷ $256,415K
= 19.17
Worthington Enterprises Inc.'s fixed asset turnover ratio has shown variability over the past five years. The company's ability to generate revenue from its investment in fixed assets has generally been high, as indicated by the consistently above-average ratios. The decreasing trend in the ratio from 7.53 in 2022 to 7.28 in 2023 suggests a slight decline in the efficiency of utilizing fixed assets to generate sales. However, this ratio remains relatively strong and indicates that the company efficiently uses its fixed assets to generate sales revenue. It is worth noting that the company's ability to generate sales from its fixed assets has generally improved since 2019, indicating an upward trend in operational efficiency. This could be attributed to effective asset management and improved utilization of fixed assets to generate sales over the years. Overall, the company's fixed asset turnover indicates efficient use of fixed assets to generate revenue, though management could focus on sustaining or improving this efficiency in the coming years.
Peer comparison
May 31, 2023