Worthington Industries Inc (WOR)
Cash conversion cycle
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 74.07 | 62.54 | 52.18 | 61.20 | 81.40 |
| Days of sales outstanding (DSO) | days | 72.30 | 63.62 | 16.67 | 61.14 | 73.88 |
| Number of days of payables | days | 45.13 | 34.27 | 10.88 | 53.89 | 77.22 |
| Cash conversion cycle | days | 101.24 | 91.89 | 57.97 | 68.45 | 78.06 |
May 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 74.07 + 72.30 – 45.13
= 101.24
The cash conversion cycle (CCC) for Worthington Industries Inc. demonstrates notable fluctuations over the period from May 2021 to May 2025. As of May 31, 2021, the CCC stood at 78.06 days, indicating the period it takes the company to convert investments in inventory and other resources into cash flows from sales. By May 31, 2022, the CCC decreased to 68.45 days, reflecting an improvement in operational efficiency, possibly due to shorter inventory turnover or faster receivables collection. The trend continued positively into May 31, 2023, with a further reduction to 57.97 days, suggesting ongoing enhancements in cash collection and inventory management.
However, the cycle experienced a significant reversal in the subsequent years. By May 31, 2024, the CCC increased sharply to 91.89 days, implying a slowdown in the conversion process, possibly driven by longer inventory holding periods, extended receivables, or efficiency issues. The upward trend persisted into May 31, 2025, with the CCC reaching 101.24 days, which indicates a considerable elongation in the cycle, potentially impacting liquidity and working capital management.
Overall, the data reveals that Worthington Industries Inc. initially improved its cash conversion efficiency from 2021 through 2023 but encountered a deterioration starting in 2024. This shift underscores changes in operational dynamics that may warrant further investigation into inventory and receivables management practices during this period.
Peer comparison
May 31, 2025