Worthington Industries Inc (WOR)
Total asset turnover
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,154,679 | 1,166,910 | 1,979,784 | 2,915,736 | 3,825,795 | 4,612,360 | 4,700,980 | 4,916,380 | 5,207,820 | 5,482,740 | 5,540,060 | 5,242,220 | 4,700,239 | 4,081,108 | 3,579,340 | 3,171,429 | 2,804,737 | 2,809,624 | 2,906,169 | 3,059,119 |
| Total assets | US$ in thousands | 1,682,000 | 1,657,020 | 1,645,270 | 1,679,480 | 1,704,690 | 3,584,140 | 3,476,690 | 3,650,920 | 3,497,670 | 3,390,660 | 3,510,140 | 3,643,020 | 3,738,160 | 3,517,630 | 3,547,760 | 3,373,240 | 3,137,870 | 3,027,380 | 3,131,050 | 2,331,520 |
| Total asset turnover | 0.69 | 0.70 | 1.20 | 1.74 | 2.24 | 1.29 | 1.35 | 1.35 | 1.49 | 1.62 | 1.58 | 1.44 | 1.26 | 1.16 | 1.01 | 0.94 | 0.89 | 0.93 | 0.93 | 1.31 |
February 28, 2025 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $1,154,679K ÷ $1,682,000K
= 0.69
Total asset turnover measures how efficiently a company is utilizing its assets to generate revenue. A higher total asset turnover ratio indicates that the company is generating more revenue per dollar of assets invested, which is generally favorable.
Looking at the data provided for Worthington Industries Inc, we can see fluctuations in the total asset turnover ratio over time. The ratio was relatively stable around 0.9 to 1.1 from August 2020 to February 2022. There was a significant increase in the ratio from February 2022 to May 2022, reaching 1.44, indicating an improvement in asset utilization efficiency during that period.
However, the ratio then continued to rise significantly, reaching a peak of 2.24 in February 2024, suggesting a substantial increase in revenue generated relative to the assets in place. This surge could be attributed to various factors such as increased sales, effective asset management, or a combination of both.
Subsequently, there was a decrease in the total asset turnover ratio from May 2024 to February 2025, dropping to 0.69. This fall may signal a potential decline in asset efficiency or a decrease in revenue relative to assets.
Overall, analyzing Worthington Industries Inc's total asset turnover ratio over time provides insight into the company's operational efficiency and asset utilization effectiveness, highlighting periods of improvement and potential areas for further examination.
Peer comparison
Feb 28, 2025