Worthington Industries Inc (WOR)
Fixed asset turnover
| Aug 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,972,901 | 2,944,453 | 2,974,013 | 3,062,633 | 4,159,375 | 4,450,815 | 5,482,740 | 5,540,060 | 5,242,220 | 4,700,239 | 4,081,108 | 3,579,340 | 3,171,429 | 2,804,737 | 2,809,624 | 2,906,169 | 3,059,119 | 3,386,334 | 3,496,719 | 3,627,308 |
| Property, plant and equipment | US$ in thousands | 255,896 | 268,382 | 704,014 | 681,868 | 256,415 | 682,229 | 682,183 | 683,503 | 696,340 | 694,497 | 551,634 | 548,268 | 515,017 | 560,225 | 572,324 | 585,946 | 572,644 | 572,270 | 568,495 | 551,723 |
| Fixed asset turnover | 7.71 | 10.97 | 4.22 | 4.49 | 16.22 | 6.52 | 8.04 | 8.11 | 7.53 | 6.77 | 7.40 | 6.53 | 6.16 | 5.01 | 4.91 | 4.96 | 5.34 | 5.92 | 6.15 | 6.57 |
August 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,972,901K ÷ $255,896K
= 7.71
The fixed asset turnover ratio of Worthington Industries Inc has exhibited fluctuations over the past several quarters. The ratio indicates how efficiently the company is utilizing its fixed assets to generate sales revenue. A higher fixed asset turnover ratio generally signifies better efficiency in asset utilization.
The company's fixed asset turnover ratio has shown a general upward trend from February 2023 to February 2024, peaking at 16.22 in May 2023. This indicates that the company was able to generate a significant amount of sales revenue relative to its investment in fixed assets during that period.
However, the ratio decreased significantly in the subsequent quarters, dropping to 4.22 in November 2023 and then gradually recovering to 10.97 in February 2024. The fluctuations in the ratio may suggest changes in the company's asset management strategies or fluctuations in sales revenue relative to the value of fixed assets.
Overall, it is important for Worthington Industries Inc to closely monitor and analyze its fixed asset turnover ratio to ensure efficient utilization of its fixed assets and to optimize its operational performance.
Peer comparison
Aug 31, 2024