Worthington Industries Inc (WOR)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 8.78 12.69 4.26 3.81 18.31 6.54 7.48 6.70 5.96 4.52 3.91 3.82 4.48 5.57 7.74 7.72 6.46 7.71 8.01 7.52
Receivables turnover 11.39 13.28 4.60 4.37 5.97 6.08 7.67 6.75 5.97 5.47 5.53 4.98 4.94 5.30 6.31 6.83 8.75 7.00 7.14 7.55
Payables turnover 19.86 22.40 5.50 4.87 28.10 8.03 10.17 8.40 6.77 5.44 5.39 4.34 4.46 5.58 6.97 8.39 10.59 8.04 9.19 9.03
Working capital turnover 4.81 6.02 3.60 3.72 3.61 4.26 5.82 6.02 6.14 5.40 3.74 3.24 2.69 2.67 2.48 2.37 5.14 6.01 6.51 6.63

The activity ratios of Worthington Industries Inc provide insights into the efficiency of the company's operations.

1. Inventory turnover: Worthington Industries Inc's inventory turnover has fluctuated over the periods, ranging from a low of 3.81 to a high of 18.31. A higher turnover indicates that the company is selling its inventory quickly, which is generally favorable as it reduces the risk of obsolete inventory and improves cash flow.

2. Receivables turnover: The receivables turnover ratio for Worthington Industries Inc has also varied significantly, with values ranging from 4.37 to 13.28. A higher receivables turnover ratio suggests that the company is collecting its receivables efficiently, turning them into cash quickly.

3. Payables turnover: Worthington Industries Inc's payables turnover ratio has shown fluctuations between 4.34 and 28.10. A higher payables turnover ratio implies that the company is paying its suppliers relatively quickly, which can sometimes indicate strong bargaining power or favorable credit terms.

4. Working capital turnover: The working capital turnover ratio of Worthington Industries Inc has displayed a range from 2.37 to 6.63. A higher working capital turnover indicates that the company is generating more revenue per unit of working capital, reflecting efficient utilization of resources.

Overall, analyzing these activity ratios can help assess the company's operational efficiency and effectiveness in managing its inventory, receivables, payables, and working capital. To gain a comprehensive understanding of Worthington Industries Inc's performance, it is important to consider these ratios in conjunction with other financial metrics and industry benchmarks.

Average number of days

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
Days of inventory on hand (DOH) days 41.59 28.75 85.62 95.71 19.94 55.84 48.80 54.44 61.20 80.79 93.23 95.61 81.40 65.52 47.18 47.27 56.53 47.32 45.56 48.56
Days of sales outstanding (DSO) days 32.04 27.49 79.32 83.53 61.17 59.99 47.57 54.07 61.14 66.74 66.03 73.25 73.88 68.86 57.83 53.43 41.69 52.16 51.13 48.36
Number of days of payables days 18.38 16.30 66.41 74.98 12.99 45.46 35.87 43.46 53.89 67.13 67.77 84.14 81.78 65.45 52.37 43.53 34.47 45.37 39.70 40.42

Days of Inventory on Hand (DOH) measures the number of days it takes for a company to sell its entire inventory. Worthington Industries Inc's DOH ranged from a low of 19.94 days to a high of 95.71 days over the past few quarters, indicating fluctuations in inventory management efficiency.

Days of Sales Outstanding (DSO) is a measure of how quickly a company collects its accounts receivable. Worthington Industries Inc's DSO varied between 41.69 days and 83.53 days, suggesting the company's collection efforts and credit policies have been inconsistent.

Number of Days of Payables highlights how long a company takes to pay its suppliers. Worthington Industries Inc's payables days ranged from 12.99 days to 84.14 days, indicating changes in the company's relationship with suppliers and its cash flow management.

Analyzing these activity ratios collectively can provide insights into Worthington Industries Inc's overall operational efficiency, inventory management practices, collection policies, and supplier relationships over the analyzed periods.

Long-term

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
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
Total asset turnover 1.20 1.73 0.83 0.88 1.14 1.27 1.62 1.58 1.44 1.26 1.16 1.01 0.94 0.89 0.93 0.93 1.31 1.39 1.45 1.52

Worthington Industries Inc's fixed asset turnover ratio fluctuated over the period under review, ranging from a low of 4.22 in November 2023 to a high of 16.22 in May 2023. This ratio measures how efficiently the company is generating revenues from its fixed assets. A higher fixed asset turnover ratio indicates better utilization of fixed assets to generate sales.

On the other hand, the total asset turnover ratio also varied during the period, with values spanning from 0.83 in November 2023 to 1.73 in February 2024. This ratio reflects how effectively the company is using its total assets to generate sales. A higher total asset turnover ratio suggests that the company is generating more sales from its total assets.

Generally, a high fixed asset turnover ratio combined with a healthy total asset turnover ratio indicates that Worthington Industries Inc is effectively utilizing both its fixed and total assets to generate revenues. However, fluctuations in these ratios over time may suggest changes in the company's operating efficiency and asset utilization strategies. Further analysis and comparison with industry peers would provide deeper insights into the company's long-term activity performance.