Worthington Industries Inc (WOR)
Inventory turnover
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 850,778 | 880,783 | 1,644,000 | 2,444,954 | 3,188,749 | 3,902,982 | 4,009,558 | 4,253,081 | 4,621,165 | 4,896,760 | 4,875,250 | 4,527,404 | 3,926,995 | 3,286,896 | 2,834,244 | 2,532,351 | 2,301,917 | 2,355,357 | 2,466,765 | 2,615,782 |
| Inventory | US$ in thousands | 165,335 | 179,463 | 187,299 | 164,615 | 191,716 | 576,411 | 672,296 | 607,968 | 601,124 | 654,624 | 727,135 | 759,140 | 869,198 | 839,588 | 742,408 | 564,754 | 413,181 | 304,443 | 319,478 | 405,101 |
| Inventory turnover | 5.15 | 4.91 | 8.78 | 14.85 | 16.63 | 6.77 | 5.96 | 7.00 | 7.69 | 7.48 | 6.70 | 5.96 | 4.52 | 3.91 | 3.82 | 4.48 | 5.57 | 7.74 | 7.72 | 6.46 |
February 28, 2025 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $850,778K ÷ $165,335K
= 5.15
Inventory turnover ratio measures how effectively a company is managing its inventory by indicating how many times the company sells and replaces its inventory during a specific period. For Worthington Industries Inc, the inventory turnover has fluctuated over the years. It was 6.46 on May 31, 2020, showing that the company sold and replaced its inventory approximately 6.46 times during that period.
The ratio increased steadily, reaching a peak of 16.63 on February 29, 2024, indicating a significant improvement in inventory management efficiency. However, the ratio declined thereafter, dropping to 5.15 on February 28, 2025, suggesting a decrease in the speed at which the company was turning over its inventory.
Overall, the trend in Worthington Industries Inc's inventory turnover ratio shows variability, with some periods demonstrating better efficiency in managing inventory turnover than others. Attention should be paid to the recent decrease in the ratio to understand any underlying factors affecting inventory turnover in the company's operations.
Peer comparison
Feb 28, 2025
Feb 28, 2025