Worthington Industries Inc (WOR)
Working capital turnover
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,916,390 | 5,242,220 | 3,171,430 | 3,059,120 | 3,759,560 |
| Total current assets | US$ in thousands | 1,868,340 | 1,785,650 | 1,967,990 | 983,179 | 1,165,910 |
| Total current liabilities | US$ in thousands | 717,558 | 932,261 | 787,901 | 388,238 | 698,020 |
| Working capital turnover | 4.27 | 6.14 | 2.69 | 5.14 | 8.04 |
May 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,916,390K ÷ ($1,868,340K – $717,558K)
= 4.27
The working capital turnover ratio of Worthington Enterprises Inc. has fluctuated over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher turnover ratio generally signifies more efficient utilization of working capital.
In 2023, the working capital turnover ratio is 4.27, which represents a decrease from the previous year. This may indicate a potential decrease in the company's efficiency in using its working capital to support sales activities.
In 2022, the ratio was 6.14, indicating a relatively high level of efficiency in converting working capital into sales. This suggests that the company effectively utilized its working capital to generate revenue.
In 2021, the ratio stood at 2.69, reflecting a lower level of efficiency compared to the previous year. This decrease may indicate a decline in the company's ability to utilize its working capital effectively to support sales activities.
In 2020, the ratio was 5.14, demonstrating a moderate level of efficiency in converting working capital into sales revenue. This indicates a slight improvement from the previous year.
In 2019, the working capital turnover ratio was 8.04, signifying a high level of efficiency in utilizing working capital to generate sales. This suggests that the company effectively managed its working capital to support its sales activities.
Overall, the fluctuation in the working capital turnover ratio implies mixed performance in effectively utilizing working capital to support sales activities over the five-year period. Further analysis of the company's working capital management and sales strategies may be warranted to identify the factors contributing to these fluctuations.
Peer comparison
May 31, 2023