Worthington Industries Inc (WOR)
Working capital turnover
| Aug 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 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,972,901 | 2,944,453 | 2,974,013 | 3,062,633 | 4,159,375 | 4,450,815 | 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 | 3,386,334 | 3,496,719 | 3,627,308 |
| Total current assets | US$ in thousands | 576,437 | 691,111 | 1,772,600 | 1,691,860 | 1,868,340 | 1,710,770 | 1,602,790 | 1,705,300 | 1,785,650 | 1,896,980 | 1,910,770 | 1,970,310 | 1,967,990 | 1,686,920 | 1,687,870 | 1,766,460 | 983,179 | 1,053,200 | 1,010,650 | 1,030,090 |
| Total current liabilities | US$ in thousands | 166,238 | 202,288 | 945,342 | 868,939 | 717,558 | 664,809 | 660,891 | 784,290 | 932,261 | 1,026,700 | 820,158 | 864,257 | 787,901 | 637,261 | 557,174 | 542,184 | 388,238 | 489,843 | 473,863 | 482,674 |
| Working capital turnover | 4.81 | 6.02 | 3.60 | 3.72 | 3.61 | 4.26 | 5.82 | 6.02 | 6.14 | 5.40 | 3.74 | 3.24 | 2.69 | 2.67 | 2.48 | 2.37 | 5.14 | 6.01 | 6.51 | 6.63 |
August 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,972,901K ÷ ($576,437K – $166,238K)
= 4.81
The working capital turnover ratio for Worthington Industries Inc has varied over the past few quarters. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio suggests that the company is efficiently managing its working capital and is effectively turning it into sales.
In the most recent quarter, ending August 31, 2024, the working capital turnover ratio was 4.81, which indicates that for every dollar of working capital invested, the company generated $4.81 in sales revenue. This represents a decrease from the previous quarter, where the ratio was higher at 6.02.
Looking further back, the working capital turnover ratio has fluctuated over the quarters, with some periods showing higher ratios (e.g., 6.51 and 6.63), indicating more efficient use of working capital, while other periods show lower ratios (e.g., 2.37 and 2.48), suggesting a less optimal utilization of working capital to generate sales.
Overall, the trend in the working capital turnover ratio for Worthington Industries Inc demonstrates variability in the efficiency of working capital management and the company's ability to convert working capital into sales revenue. It is important for the company to analyze the reasons behind these fluctuations and work towards maintaining a consistent and efficient use of working capital to support sustainable growth and profitability.
Peer comparison
Aug 31, 2024