Worthington Industries Inc (WOR)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 70.93 | 74.37 | 41.58 | 24.57 | 21.94 | 53.90 | 61.20 | 52.18 | 47.48 | 48.80 | 54.44 | 61.20 | 80.79 | 93.23 | 95.61 | 81.40 | 65.52 | 47.18 | 47.27 | 56.53 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 70.93 | 74.37 | 41.58 | 24.57 | 21.94 | 53.90 | 61.20 | 52.18 | 47.48 | 48.80 | 54.44 | 61.20 | 80.79 | 93.23 | 95.61 | 81.40 | 65.52 | 47.18 | 47.27 | 56.53 |
February 28, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 70.93 + — – —
= 70.93
The cash conversion cycle for Worthington Industries Inc has fluctuated over the years, indicating changes in the company's efficiency in managing its working capital.
The cycle reached its peak at 95.61 days on August 31, 2021, suggesting a longer time for the company to convert its investments in inventory back into cash. This could indicate potential issues with inventory management or supplier payment terms during that period.
Subsequently, there was a significant decrease in the cash conversion cycle to 21.94 days on February 29, 2024, which may reflect improvements in inventory turnover or more efficient collection of receivables.
Overall, fluctuations in the cash conversion cycle can provide insights into a company's operational efficiency, liquidity position, and management of working capital. Monitoring this metric over time can help assess the company's ability to generate cash from its operational activities and identify potential areas for improvement.
Peer comparison
Feb 28, 2025