Worthington Industries Inc (WOR)
Receivables turnover
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,153,760 | 1,245,700 | 4,916,390 | 5,242,220 | 3,171,430 |
| Receivables | US$ in thousands | 228,544 | 217,117 | 224,549 | 878,049 | 641,922 |
| Receivables turnover | 5.05 | 5.74 | 21.89 | 5.97 | 4.94 |
May 31, 2025 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,153,760K ÷ $228,544K
= 5.05
The receivables turnover ratios for Worthington Industries Inc over the specified period demonstrate considerable fluctuations, indicating variability in the company's efficiency in collecting accounts receivable. As of May 31, 2021, the ratio stood at 4.94, suggesting that the company collected its average receivables approximately 4.94 times during the fiscal year. This ratio increased modestly to 5.97 by May 31, 2022, reflecting a slight improvement in receivables management.
A significant change occurred by May 31, 2023, with the ratio surging to 21.89, representing a substantial spike in collection efficiency. This sharp increase could be attributed to various factors such as improved credit policies, collection practices, or a shift in the customer base favoring more prompt payments. However, subsequent years show a decline in the ratio, with May 31, 2024, at 5.74 and May 31, 2025, decreasing further to 5.05. This downward trend indicates a reduction in collection efficiency, returning closer to the levels observed in 2021.
Overall, the data suggests that Worthington Industries experienced a period of notable improvement in receivables turnover up to 2023, followed by a reversion toward earlier levels in the subsequent years. The high ratio in 2023 implies a period of accelerated receivables collection, whereas the decline thereafter may reflect challenges or changes in credit policies, customer payment behavior, or operating circumstances.
Peer comparison
May 31, 2025