Worthington Industries Inc (WOR)
Total asset turnover
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,245,700 | 4,916,390 | 5,242,220 | 3,171,430 | 3,059,120 |
| Total assets | US$ in thousands | 1,638,640 | 3,650,920 | 3,643,020 | 3,373,240 | 2,331,520 |
| Total asset turnover | 0.76 | 1.35 | 1.44 | 0.94 | 1.31 |
May 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,245,700K ÷ $1,638,640K
= 0.76
The total asset turnover ratio of Worthington Industries Inc has shown fluctuations over the past five years. It stood at 1.31 on May 31, 2020, indicating that the company generated $1.31 in revenue for every dollar of assets. This ratio fell to 0.94 on May 31, 2021, suggesting a decrease in the company's efficiency in utilizing its assets to generate revenue.
However, there was a significant improvement in the total asset turnover ratio in the subsequent years. By May 31, 2022, the ratio had increased to 1.44, indicating that Worthington Industries Inc had enhanced its ability to generate sales from its assets efficiently. This positive trend continued in the following year with a total asset turnover ratio of 1.35 on May 31, 2023, suggesting further improvement in asset utilization.
On May 31, 2024, Worthington Industries Inc experienced a decline in its total asset turnover ratio to 0.76. This decrease may indicate a potential inefficiency in turning its assets into revenue during that period.
In conclusion, while the total asset turnover ratio of Worthington Industries Inc has exhibited both positive and negative trends over the past five years, the company has shown varying levels of efficiency in generating revenue from its assets during this period. It is important for stakeholders to monitor this ratio to ensure that the company continues to effectively utilize its assets to drive sales.
Peer comparison
May 31, 2024