Worthington Industries Inc (WOR)
Payables turnover
| May 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 834,727 | 850,778 | 880,783 | 1,644,000 | 2,444,954 | 3,188,749 | 3,210,811 | 3,317,387 | 3,560,910 | 3,928,994 | 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 |
| Payables | US$ in thousands | 103,205 | 83,905 | 83,262 | 82,768 | 81,167 | 99,181 | 447,119 | 526,686 | 126,743 | 489,346 | 462,194 | 562,962 | 668,438 | 722,284 | 610,278 | 653,377 | 535,770 | 412,793 | 337,976 | 294,172 |
| Payables turnover | 8.09 | 10.14 | 10.58 | 19.86 | 30.12 | 32.15 | 7.18 | 6.30 | 28.10 | 8.03 | 10.59 | 8.66 | 6.77 | 5.44 | 5.39 | 4.34 | 4.73 | 5.58 | 6.97 | 8.39 |
May 31, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $834,727K ÷ $103,205K
= 8.09
The payables turnover ratio for Worthington Industries Inc exhibits notable fluctuations over the analyzed periods, reflecting changes in the company's management of its accounts payable relative to its cost of goods sold (COGS).
From August 31, 2020, to May 31, 2021, there is a declining trend in payables turnover, decreasing from 8.39 to 4.73. This decline suggests that the company was taking longer to pay its suppliers, possibly indicating stretched payment terms or cash management strategies aimed at conserving liquidity during that period.
Subsequently, the ratio partially recovers, reaching 6.77 as of May 31, 2022, and continuing upward to 8.66 by August 31, 2022. This indicates an improvement in the company's payment efficiency or a shift towards paying suppliers more promptly, aligning with a potentially healthier working capital cycle.
A significant spike occurs in May 2023, where the payables turnover sharply rises to 28.10, before falling back to 6.30 in August 2023. The peak suggests a period of expedited payments or a substantial reduction in accounts payable relative to COGS, which may coincide with strategic adjustments or extraordinary circumstances.
The data further indicates an unprecedented increase in May 2024, with the ratio reaching 30.12, followed by a decline to 19.86 in August 2024. Such peaks might reflect temporary periods of aggressive paydowns or changes in supplier credit terms, necessitating cautious interpretation, as they could also be distortions caused by accounting effects or atypical supplier arrangements.
In the most recent periods, the ratios stabilize somewhat, with values around 10 to 11 in late 2024 and late 2025, indicating a more consistent payables management approach comparable to earlier periods, though still exhibiting variability.
Overall, the payables turnover ratio of Worthington Industries Inc has demonstrated considerable volatility, with periods of both extended and accelerated payment patterns. This variability may be influenced by strategic management of supplier credit, cash flow considerations, or operational adjustments, and warrants ongoing monitoring for insights into the company's liquidity and vendor relationships.
Peer comparison
May 31, 2025