Worthington Industries Inc (WOR)
Cash ratio
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 244,225 | 454,946 | 34,485 | 640,311 | 147,198 |
| Short-term investments | US$ in thousands | — | — | — | 233,126 | — |
| Total current liabilities | US$ in thousands | 178,376 | 717,558 | 932,261 | 787,901 | 388,238 |
| Cash ratio | 1.37 | 0.63 | 0.04 | 1.11 | 0.38 |
May 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($244,225K
+ $—K)
÷ $178,376K
= 1.37
The cash ratio of Worthington Industries Inc has shown fluctuations over the past five years. Starting at 0.38 on May 31, 2020, the ratio increased to 1.11 on May 31, 2021, indicating an improvement in the company's ability to cover its current liabilities with cash and cash equivalents. However, there was a significant decrease in the cash ratio to 0.04 on May 31, 2022, which could signal potential liquidity challenges.
Subsequently, the ratio recovered to 0.63 on May 31, 2023, suggesting a partial improvement in the company's liquidity position. Finally, Worthington Industries Inc's cash ratio improved significantly to 1.37 on May 31, 2024, indicating a strong ability to cover its short-term obligations with readily available cash.
Overall, the trend in Worthington Industries Inc's cash ratio reflects variability in its liquidity position over the years, with efforts to enhance liquidity evident in the most recent data point. It will be important for the company to maintain a healthy cash ratio to ensure it can meet its financial obligations effectively.
Peer comparison
May 31, 2024