Worthington Industries Inc (WOR)
Working capital turnover
| May 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,153,762 | 1,154,679 | 1,166,910 | 1,979,784 | 2,915,736 | 3,825,795 | 3,855,355 | 3,943,975 | 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 |
| Total current assets | US$ in thousands | 685,370 | 633,964 | 602,999 | 576,437 | 673,893 | 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 |
| Total current liabilities | US$ in thousands | 196,842 | 180,388 | 169,464 | 166,238 | 178,376 | 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 |
| Working capital turnover | 2.36 | 2.55 | 2.69 | 4.83 | 5.88 | 7.83 | 4.66 | 4.79 | 3.61 | 4.26 | 5.82 | 6.02 | 6.14 | 5.40 | 3.74 | 3.24 | 2.69 | 2.67 | 2.48 | 2.37 |
May 31, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,153,762K ÷ ($685,370K – $196,842K)
= 2.36
The analysis of Worthington Industries Inc.'s working capital turnover ratio from August 31, 2020, to May 31, 2025, reveals notable fluctuations indicative of the company's evolving operational efficiency and capital management.
Initially, the ratio exhibits a gradual upward trend, increasing from 2.37 in August 2020 to 3.74 by November 2021. This suggests an improvement in how effectively the company is generating sales relative to its working capital during this period, potentially reflecting better inventory management, receivables collection, or overall operational efficiency.
A significant escalation occurs from November 2021 onward, with the ratio plunging sharply from 3.74 to 5.40 by February 2022, then peaking at 6.14 in May 2022. The spike indicates that the company was achieving higher sales relative to its working capital, possibly attributable to increased sales volumes, enhanced operational leverage, or a reduction in working capital components such as inventory or receivables.
Following the peak, the ratio remains relatively high but exhibits some degree of fluctuation, declining slightly to 4.66 by November 2023. These variations suggest periods of consolidation or adjustments in working capital management, reflecting shifts in sales efficiency or inventory and receivables levels.
The most prominent change occurs between November 2023 and February 2024, where the ratio surges notably from 4.66 to 7.83. This sharp increase indicates a substantial rise in sales relative to working capital, possibly due to aggressive revenue growth, a reduction in working capital investment, or operational efficiencies gained during this period.
Subsequently, the ratio declines again to 2.69 by November 2024, approaching the earlier lower levels, and further decreases to 2.36 by May 2025. This downward trend might suggest a loosening of operational efficiencies, increased working capital investments, or a slowdown in sales growth relative to working capital.
Overall, the data depicts a pattern of periods of strong operational performance, punctuated by fluctuations that reflect changes in working capital management and sales dynamics. The substantial peaks and troughs underscore the importance of ongoing efficiency and cash flow management strategies to sustain optimal working capital utilization over time.
Peer comparison
May 31, 2025