Worthington Industries Inc (WOR)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 16.62 | 5.57 | 4.93 | 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 | 6.77 |
| Receivables turnover | 17.25 | 5.96 | 5.63 | 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 | 7.33 |
| Payables turnover | 29.33 | 7.18 | 6.30 | 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 | 8.33 |
| Working capital turnover | 7.83 | 4.66 | 4.79 | 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 | 8.04 |
Worthington Industries Inc's inventory turnover has shown fluctuations over the past few periods, ranging from a low of 3.82 to a high of 18.31. This indicates varying efficiency in managing inventory levels and converting them into sales. The company's inventory turnover has generally been on an upward trend, which could signify improvements in inventory management.
Receivables turnover for Worthington Industries Inc has also displayed variability, with values ranging from 4.94 to 17.25. This suggests fluctuations in the company's ability to collect receivables from customers in a timely manner. The upward trend in recent periods indicates improved efficiency in collecting outstanding payments.
In terms of payables turnover, Worthington Industries Inc has experienced fluctuations in the range of 4.34 to 29.33. This variability may reflect changes in the company's payment practices to suppliers. The increasing trend in payables turnover suggests the company is taking longer to pay its suppliers, potentially benefiting from extended payment terms.
The working capital turnover ratio for Worthington Industries Inc has seen fluctuations, ranging from 2.24 to 8.04. The ratio reflects how effectively the company is utilizing its working capital to generate revenue. The upward trend in recent periods indicates improved efficiency in utilizing working capital to support business operations and generate sales.
Overall, Worthington Industries Inc's activity ratios show fluctuations over the periods analyzed, indicating changes in inventory management, receivables collection, payables payment practices, and working capital utilization. Monitoring these ratios can provide insights into the company's operational efficiency and effectiveness in managing its resources.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 21.96 | 65.53 | 73.97 | 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 | 53.90 |
| Days of sales outstanding (DSO) | days | 21.16 | 61.19 | 64.86 | 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 | 49.79 |
| Number of days of payables | days | 12.44 | 50.83 | 57.95 | 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 | 43.80 |
Days of inventory on hand (DOH), a measure of how quickly a company turns its inventory into sales, shows Worthington Industries Inc has improved its inventory management efficiency over the past five quarters, with the current DOH at 21.96 days, which is significantly lower than the highs of 93.23 days in Nov 30, 2021. This indicates the company is managing its inventory more effectively, possibly by optimizing production and supply chain processes.
Days of sales outstanding (DSO), representing the average number of days it takes to collect revenue after a sale, has fluctuated but is currently at 21.16 days. This suggests Worthington Industries Inc has been successful in collecting receivables faster compared to previous quarters. The improvement in DSO indicates effective credit management and collection practices, resulting in faster cash conversion.
Number of days of payables gives insight into how long a company takes to pay its suppliers. Worthington Industries Inc has reduced its payables collection period to 12.44 days, indicating improved payment efficiency compared to previous periods. This could mean stronger negotiation power with suppliers or potential benefits from early payment discounts.
Overall, the data suggests Worthington Industries Inc has enhanced its working capital management efficiency, as evidenced by the improvements in inventory turnover, receivables collection speed, and payables management. These trends bode well for the company's liquidity and operational performance.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 2.24 | 1.08 | 1.13 | 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 | 1.50 |
Worthington Industries Inc's fixed asset turnover ratio has shown significant fluctuations over the past several reporting periods, ranging from a low of 4.91 to a high of 16.22. The company's fixed asset turnover, a measure of how efficiently the company generates revenue from its fixed assets, has generally trended upwards but has experienced fluctuations in its efficiency in utilizing fixed assets.
In contrast, the total asset turnover ratio, which measures the company's ability to generate revenue from all its assets, has also shown fluctuations but on a more moderate scale compared to the fixed asset turnover ratio. The total asset turnover ratio ranged from a low of 0.89 to a high of 2.24, indicating variability in the company's efficiency in generating sales from its total assets.
Overall, while both ratios exhibit variability, the fixed asset turnover ratio suggests that Worthington Industries Inc may have experienced challenges or improvements in efficiently utilizing its fixed assets to generate revenue. The total asset turnover ratio provides a broader perspective on the company's efficiency in generating revenue from all its assets, showing more stability in performance over the periods analyzed.