Worthington Industries Inc (WOR)
Total asset 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 |
| Total assets | US$ in thousands | 1,695,150 | 1,638,640 | 3,650,920 | 3,643,020 | 3,373,240 |
| Total asset turnover | 0.68 | 0.76 | 1.35 | 1.44 | 0.94 |
May 31, 2025 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,153,760K ÷ $1,695,150K
= 0.68
The total asset turnover ratio for Worthington Industries Inc. demonstrates notable fluctuations over the analyzed period from May 31, 2021, to May 31, 2025. Specifically, the ratio increased significantly from 0.94 in 2021 to 1.44 in 2022, indicating a marked improvement in the company's efficiency in generating sales from its asset base during that period. This upward trend suggests that the company's utilization of its assets became more effective in converting asset investments into revenue in 2022.
However, after reaching its peak in 2022, the ratio experienced a decline, decreasing to 1.35 in 2023, reflecting a slight deterioration in asset efficiency. The downward trend persisted into 2024 and 2025, with the ratio falling further to 0.76 and then to 0.68, respectively. This sustained decline over the three-year period suggests that the company's ability to generate sales from its assets has diminished considerably. Several factors could contribute to this decline, including increased asset holdings that are not proportionally generating revenue, operational inefficiencies, or shifts in business strategy.
Overall, the total asset turnover ratio's pattern indicates a period of efficiency growth peaking in 2022, followed by a prolonged decrease in asset utilization effectiveness through 2025. This trend warrants further analysis to understand the underlying causes and assess the implications for the company's operational performance and strategic positioning.
Peer comparison
May 31, 2025