Worthington Industries Inc (WOR)
Working capital 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 current assets | US$ in thousands | 673,893 | 1,868,340 | 1,785,650 | 1,967,990 | 983,179 |
| Total current liabilities | US$ in thousands | 178,376 | 717,558 | 932,261 | 787,901 | 388,238 |
| Working capital turnover | 2.51 | 4.27 | 6.14 | 2.69 | 5.14 |
May 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,245,700K ÷ ($673,893K – $178,376K)
= 2.51
The working capital turnover for Worthington Industries Inc has fluctuated over the past five years. In May 31, 2020, the company's working capital turnover was 5.14, indicating that they were able to generate 5.14 times the revenue from their working capital during that period.
However, in the following year, by May 31, 2021, the working capital turnover decreased to 2.69, suggesting a decrease in efficiency in utilizing their working capital to generate revenue. This reduction could be due to various factors, such as changes in sales trends or inefficiencies in managing their working capital components.
In the subsequent years, Worthington Industries Inc managed to improve its working capital turnover, reaching 6.14 by May 31, 2022, and then slightly decreasing to 4.27 by May 31, 2023. This improvement indicates that the company was able to enhance its working capital efficiency, effectively leveraging its current assets to generate revenue.
However, by May 31, 2024, the working capital turnover dropped to 2.51, marking a significant decline from the previous year. This decrease could signal potential challenges or inefficiencies in managing working capital for that period.
In conclusion, Worthington Industries Inc has shown varying levels of efficiency in utilizing its working capital to generate revenue over the past five years. It is essential for the company to closely monitor and manage its working capital components to ensure optimal utilization and profitability.
Peer comparison
May 31, 2024