Worthington Industries Inc (WOR)
Working capital turnover
| 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 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,154,679 | 1,166,910 | 1,979,784 | 2,915,736 | 3,825,795 | 4,612,360 | 4,700,980 | 4,916,380 | 5,207,820 | 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 |
| Total current assets | US$ in thousands | 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 | 983,179 |
| Total current liabilities | US$ in thousands | 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 | 388,238 |
| Working capital turnover | 2.55 | 2.69 | 4.83 | 5.88 | 7.83 | 5.58 | 5.71 | 4.27 | 4.98 | 5.82 | 6.02 | 6.14 | 5.40 | 3.74 | 3.24 | 2.69 | 2.67 | 2.48 | 2.37 | 5.14 |
February 28, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,154,679K ÷ ($633,964K – $180,388K)
= 2.55
The working capital turnover ratio for Worthington Industries Inc has shown fluctuations over the periods provided. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.
The trend analysis reveals that the working capital turnover ratio increased from 5.14 on May 31, 2020, to 7.83 on February 29, 2024, which suggests an improvement in the company's ability to generate sales revenue using its working capital during this period.
However, there was a significant decline in the ratio from February 29, 2024, to August 31, 2024, dropping to 4.83, indicating potentially less efficient utilization of working capital during that particular period.
Subsequently, the ratio decreased further to 2.69 by November 30, 2024, before slightly recovering to 2.55 by February 28, 2025. Overall, there seems to be some variability in the company's ability to efficiently convert working capital into sales revenue during the most recent periods.
It is recommended that Worthington Industries Inc closely monitor and manage its working capital turnover ratio to ensure optimal utilization of its working capital resources for generating sales revenue. Further analysis and understanding of the factors contributing to these fluctuations can help the company make informed decisions to improve its operational efficiency and financial performance.
Peer comparison
Feb 28, 2025