Worthington Industries Inc (WOR)
Cash ratio
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 422,268 | 34,485 | 640,311 | 147,198 | 92,363 |
| Short-term investments | US$ in thousands | 32,678 | — | 233,126 | — | — |
| Total current liabilities | US$ in thousands | 717,558 | 932,261 | 787,901 | 388,238 | 698,020 |
| Cash ratio | 0.63 | 0.04 | 1.11 | 0.38 | 0.13 |
May 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($422,268K
+ $32,678K)
÷ $717,558K
= 0.63
The cash ratio of Worthington Enterprises Inc., which measures the company's ability to cover its short-term liabilities with its cash and cash equivalents, has fluctuated significantly over the past five years. The ratio stood at 0.78 as of May 31, 2023, indicating that the company had $0.78 in cash and cash equivalents for every $1 of current liabilities. This represents a substantial improvement from the previous year, when the ratio was 0.14.
The significant increase in the cash ratio from 2022 to 2023 suggests that the company may have strengthened its liquidity position, potentially by increasing its cash reserves or reducing its short-term liabilities. This improvement is a positive sign, as it indicates that the company has improved its ability to meet its short-term financial obligations using its available cash resources.
Comparing the cash ratio to previous years, it is evident that Worthington Enterprises Inc. has experienced fluctuations in its liquidity position. The ratio was 0.90 in 2021, 0.56 in 2020, and 0.23 in 2019. These fluctuations could be attributed to changes in the company's cash position, short-term liabilities, or a combination of both.
Overall, while the company's cash ratio has fluctuated over the past five years, the significant improvement in 2023 compared to 2022 indicates a positive trend in the company's liquidity position. However, it is important to consider other liquidity and financial indicators in conjunction with the cash ratio to gain a comprehensive understanding of Worthington Enterprises Inc.'s overall financial health.
Peer comparison
May 31, 2023