Worthington Industries Inc (WOR)
Working capital 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 current assets | US$ in thousands | 685,370 | 673,893 | 1,868,340 | 1,785,650 | 1,967,990 |
| Total current liabilities | US$ in thousands | 196,842 | 178,376 | 717,558 | 932,261 | 787,901 |
| Working capital turnover | 2.36 | 2.51 | 4.27 | 6.14 | 2.69 |
May 31, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,153,760K ÷ ($685,370K – $196,842K)
= 2.36
The working capital turnover ratio for Worthington Industries Inc. has exhibited notable fluctuations over the period from May 31, 2021, to May 31, 2025. Specifically, the ratio increased significantly from 2.69 in 2021 to 6.14 in 2022, indicating a substantial improvement in the efficiency with which the company utilized its working capital to generate sales. This spike suggests that in 2022, Worthington Industries was able to generate a higher volume of sales relative to its working capital investment, possibly due to operational efficiencies or changes in working capital management.
Following this peak, the ratio declined to 4.27 in 2023, reflecting a reduction in the efficiency of working capital utilization or a relative increase in working capital compared to sales. The downward trend continued into 2024 and 2025, with the ratios dropping further to 2.51 and 2.36, respectively. This sustained decrease may suggest that the company’s sales growth did not keep pace with an increase in working capital or that the company’s liquidity management strategies shifted, leading to higher working capital levels that are not proportionally translated into sales.
Overall, the data indicates a period of initial efficiency enhancement in 2022, followed by a subsequent decline in working capital utilization efficiency over the next two years. The decline in the ratio in recent years might warrant further analysis into underlying operational or strategic factors influencing working capital components such as receivables, inventories, or payables.
Peer comparison
May 31, 2025