Worthington Industries Inc (WOR)
Cash ratio
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 250,075 | 244,225 | 454,946 | 34,485 | 640,311 |
| Short-term investments | US$ in thousands | — | — | — | — | 233,126 |
| Total current liabilities | US$ in thousands | 196,842 | 178,376 | 717,558 | 932,261 | 787,901 |
| Cash ratio | 1.27 | 1.37 | 0.63 | 0.04 | 1.11 |
May 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($250,075K
+ $—K)
÷ $196,842K
= 1.27
The cash ratio of Worthington Industries Inc has exhibited significant fluctuations over the period from May 31, 2021, to May 31, 2025. Specifically, the cash ratio was 1.11 in 2021, indicating that the company's cash and cash equivalents were more than sufficient to cover its current liabilities at that time. However, by May 31, 2022, the cash ratio sharply declined to 0.04, signifying a substantial reduction in liquidity and minimal cash coverage relative to current liabilities.
Following this decline, the cash ratio increased markedly to 0.63 in 2023, suggesting a partial recovery in liquidity position, although still below the ideal level of 1.0, which would imply cash resources are nearly equivalent to current liabilities. The upward trend continued, with the ratio reaching 1.37 in 2024, surpassing the 1.0 benchmark and indicating a strong liquidity position where cash and cash equivalents comfortably cover current liabilities. In the most recent data point for 2025, the cash ratio stood at 1.27, reflecting sustained liquidity strength, although slightly below the previous year's peak.
Overall, the company's cash ratio trend demonstrates periods of both liquidity stress and subsequent recovery, culminating in a robust cash position as of 2024 and maintaining relative strength into 2025. This pattern underscores a notable improvement in liquidity management following the low ratio in 2022 and suggests an overall positive trajectory in cash and short-term liquidity holdings over the analyzed period.
Peer comparison
May 31, 2025