Worthington Industries Inc (WOR)
Payables turnover
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 834,727 | 960,684 | 4,253,080 | 4,527,400 | 2,532,350 |
| Payables | US$ in thousands | 103,205 | 90,205 | 126,743 | 668,438 | 535,770 |
| Payables turnover | 8.09 | 10.65 | 33.56 | 6.77 | 4.73 |
May 31, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $834,727K ÷ $103,205K
= 8.09
The analysis of Worthington Industries Inc.'s payables turnover ratios over the specified periods reveals notable fluctuations and trends. As of May 31, 2021, the company's payables turnover stood at 4.73, indicating a relatively moderate pace in settling its trade payables. This ratio increased significantly by May 31, 2022, reaching 6.77, which suggests an improvement in the company's ability to pay its suppliers more quickly or an acceleration in the frequency of payments.
A substantial rise is observed in the ratio by May 31, 2023, reaching 33.56. This indicates a markedly higher pace of payments relative to the accounts payable balance, which could result from increased liquidity, improved payment policies, or changes in vendor agreements. The ratio then declines to 10.65 by May 31, 2024, suggesting a slowing down in payables turnover, potentially attributable to strategic changes such as extending payment terms or reduced payment frequency, or possibly due to cash flow considerations.
By the end of the subsequent period on May 31, 2025, the ratio further decreases to 8.09. While still elevated compared to early 2021, this decline indicates a moderation in the speed of paying suppliers relative to the previous year's spike. Overall, these fluctuations reflect dynamic management of trade payables, possibly influenced by operational strategies, liquidity positions, or external market conditions. The significant peak in 2023 warrants particular attention, as it may signal a period of optimized cash management or altered supplier relationships.
Peer comparison
May 31, 2025