Worthington Industries Inc (WOR)

Short-term

Turnover ratios

The inventory turnover ratio for Worthington Industries Inc has fluctuated over the years, indicating changes in how effectively the company is managing its inventory. The ratio started at 6.46 on May 31, 2020, peaked at 16.63 on February 29, 2024, and is currently at 5.15 as of February 28, 2025. A higher inventory turnover ratio generally indicates efficient inventory management.

The receivables turnover and payables turnover ratios are not available for analysis, possibly due to the nature of Worthington Industries' operations or reporting practices.

The working capital turnover ratio shows the company's ability to generate revenue relative to the amount of working capital employed. Worthington Industries Inc's working capital turnover ratio varied over the period, with a peak of 7.83 on February 29, 2024, and a low of 2.37 on August 31, 2020. A higher working capital turnover ratio suggests better efficiency in utilizing working capital to generate sales.

Overall, while the company's inventory turnover and working capital turnover ratios have shown some fluctuations, further analysis would be needed to understand the reasons behind these changes and their impact on Worthington Industries' operational efficiency and financial performance.

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Average number of days

Based on the provided data for Worthington Industries Inc, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The DOH measures how many days, on average, a company holds its inventory before selling it.
- Worthington Industries Inc's DOH has shown fluctuations over the years, ranging from a low of 21.94 days to a high of 95.61 days.
- A decreasing trend in DOH, such as the drop from 95.61 days to 48.80 days, indicates better inventory management efficiency.
- However, the sudden increase in DOH from 48.80 days to 74.37 days by the end of November 2024 warrants further investigation into potential issues with inventory control.

2. Days of Sales Outstanding (DSO):
- Unfortunately, there is no data available for DSO, which would typically reflect how long it takes for the company to collect its accounts receivable.

3. Number of Days of Payables:
- Similarly, there is no data provided for the number of days of payables, which would have shown how long the company takes to pay its suppliers.

In summary, based on the available information for Worthington Industries Inc, the analysis of activity ratios is limited to the Days of Inventory on Hand (DOH). The company has shown varying levels of efficiency in managing its inventory, with notable fluctuations observed over the years. The analysis of DSO and payables is not possible due to the absence of data, which would have provided further insight into the company's overall operational effectiveness.

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Long-term

Worthington Industries Inc has shown an improving trend in its fixed asset turnover ratio over the years, indicating increased efficiency in utilizing its fixed assets to generate sales. The fixed asset turnover ratio has increased from 5.34 in May 2020 to 6.03 in August 31, 2023. However, there was a slight decline in the ratio to 5.77 in November 30, 2023. From February 29, 2024, data for the fixed asset turnover ratio is not available.

In terms of total asset turnover, the company's performance has been relatively volatile. The total asset turnover ratio fluctuated between 0.93 and 1.58 during the period from May 31, 2020, to November 30, 2023. Notably, there was a significant improvement in the ratio from February 29, 2024, onwards, reaching 0.69 by February 28, 2025.

Overall, the trend in fixed asset turnover suggests that Worthington Industries Inc has been efficiently utilizing its fixed assets to generate sales. However, the fluctuations in the total asset turnover ratio indicate some variability in how efficiently the company is using its total assets to generate revenue.