Worthington Industries Inc (WOR)
Activity ratios
Short-term
Turnover ratios
| Nov 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.87 | 4.89 | 8.90 | 3.00 | 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 |
| Receivables turnover | 5.90 | 6.84 | 9.72 | 3.38 | 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 |
| Payables turnover | 10.49 | 11.06 | 15.69 | 3.87 | 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 |
| Working capital turnover | 2.64 | 2.89 | 4.41 | 2.64 | 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 |
Based on the activity ratios provided for Worthington Industries Inc, we can observe the following trends:
1. Inventory Turnover:
- The inventory turnover ratio has fluctuated over the years, ranging from a high of 18.31 in May 31, 2023, to a low of 3.00 in November 30, 2023. This indicates varying efficiency in managing and selling inventory during different periods.
2. Receivables Turnover:
- The receivables turnover ratio has also shown fluctuations, suggesting changes in the company's ability to collect receivables efficiently. The ratio ranged from a high of 9.72 in February 29, 2024, to a low of 3.38 in November 30, 2023.
3. Payables Turnover:
- The payables turnover ratio reflects how quickly the company pays its suppliers. The ratio fluctuated over the years, with a high of 28.10 in May 31, 2023, and a low of 3.87 in November 30, 2023, indicating variations in payment practices.
4. Working Capital Turnover:
- The working capital turnover ratio reveals how effectively the company utilizes its working capital to generate sales. The ratio fluctuated between 6.51 in November 30, 2019, and 2.64 in November 30, 2024, showcasing changes in the efficiency of working capital management.
Overall, analyzing these activity ratios provides insights into Worthington Industries Inc's operational efficiency in managing inventory, receivables, payables, and working capital over the years. It is crucial for the company to monitor these ratios closely and make adjustments as needed to improve operational performance and financial health.
Average number of days
| Nov 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 75.00 | 74.66 | 41.03 | 121.68 | 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 |
| Days of sales outstanding (DSO) | days | 61.88 | 53.39 | 37.55 | 107.95 | 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 |
| Number of days of payables | days | 34.80 | 32.99 | 23.26 | 94.38 | 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 |
Worthington Industries Inc's days of inventory on hand (DOH) increased from 45.56 days in November 2019 to 75.00 days in November 2024. The highest DOH was observed in November 2023 at 121.68 days, indicating slower inventory turnover. However, there was a significant decrease to 19.94 days in May 2023, suggesting more efficient inventory management during that period.
Days of sales outstanding (DSO) ranged from 37.55 days in February 2024 to 107.95 days in November 2023. DSO measures how quickly the company collects its receivables, and a decrease in this ratio indicates faster collections. The company's DSO fluctuated over the periods, with the highest recorded in November 2023 and the lowest in February 2024.
The number of days of payables ranged from 12.99 days in May 2023 to 94.38 days in November 2023. A higher number of days of payables indicates that the company is taking longer to pay its suppliers, which can help with cash flow management. There was a significant decrease from November 2023 to May 2023, indicating a quicker payment cycle during that period.
In summary, Worthington Industries Inc exhibited fluctuations in its activity ratios over the periods analyzed, indicating varying efficiency levels in managing inventory, collecting receivables, and paying its suppliers.
Long-term
| Nov 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 4.42 | 4.63 | 8.03 | 3.10 | 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 |
| Total asset turnover | 0.69 | 0.72 | 1.26 | 0.61 | 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 |
The fixed asset turnover ratio for Worthington Industries Inc has shown fluctuations over the past few years. It has been generally decreasing from November 30, 2019, to May 31, 2022, with some variations. However, there was a significant spike in the ratio on May 31, 2023, followed by a sharp decline by August 31, 2023. The ratio then improved by February 28, 2024, before declining again by November 30, 2024.
On the other hand, the total asset turnover ratio depicts a declining trend from November 30, 2019, to August 31, 2020. The ratio remained relatively stable from November 2020 to February 2023, with some minor fluctuations. There was a significant increase in the ratio by February 28, 2024, before dropping again by November 30, 2024.
Overall, the fixed asset turnover ratio indicates how efficiently the company is utilizing its fixed assets to generate sales, with recent months showing an improvement. In contrast, the total asset turnover ratio reveals the company's ability to generate sales from its total assets, showing fluctuations over the years. It is essential for Worthington Industries Inc to monitor these ratios closely to ensure optimal asset utilization and overall operational efficiency.