Worthington Industries Inc (WOR)
Fixed asset turnover
| 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 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,825,795 | 3,855,355 | 3,943,975 | 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 | 3,759,556 |
| Property, plant and equipment | US$ in thousands | 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 | 578,664 |
| Fixed asset turnover | 14.26 | 5.48 | 5.78 | 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 | 6.50 |
February 29, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,825,795K ÷ $268,382K
= 14.26
The fixed asset turnover ratio for Worthington Industries Inc has shown variability over the past several reporting periods. The ratio ranged from a low of 4.91 to a high of 16.22, with an average value of approximately 7.02.
A higher fixed asset turnover ratio indicates that the company is generating more sales revenue relative to its investment in fixed assets, suggesting efficient utilization of its asset base. In contrast, a lower ratio may imply underutilization or inefficiencies in the company's fixed assets.
The significant fluctuations in the fixed asset turnover ratio suggest varying levels of efficiency in utilizing fixed assets over time. For instance, the ratio was at its peak in May 2023 at 16.22, indicating a substantial increase in sales generated per dollar of fixed assets compared to other periods. On the other hand, the ratio hit a low point in November 2020 at 4.91, signaling relatively lower sales generated per dollar of fixed assets during that period.
Overall, further investigation into the underlying reasons for the fluctuations in the fixed asset turnover ratio could provide insights into the company's operational efficiency and asset utilization strategies.
Peer comparison
Feb 29, 2024