Worthington Industries Inc (WOR)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 222,844 | 193,805 | 178,547 | 244,225 | 227,310 | 430,906 | 201,009 | 454,946 | 267,244 | 129,596 | 35,768 | 34,485 | 44,324 | 225,194 | 399,246 | 640,311 | 649,505 | 713,130 | 650,068 | 147,198 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 259,132 | -16,857 | 220,415 | 143,850 | 287,630 | — |
| Total current liabilities | US$ in thousands | 180,388 | 169,464 | 166,238 | 178,376 | 202,288 | 945,342 | 868,939 | 717,558 | 664,809 | 660,891 | 784,290 | 932,261 | 1,026,700 | 820,158 | 864,257 | 787,901 | 637,261 | 557,174 | 542,184 | 388,238 |
| Cash ratio | 1.24 | 1.14 | 1.07 | 1.37 | 1.12 | 0.46 | 0.23 | 0.63 | 0.40 | 0.20 | 0.05 | 0.04 | 0.04 | 0.27 | 0.76 | 0.79 | 1.37 | 1.54 | 1.73 | 0.38 |
February 28, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($222,844K
+ $—K)
÷ $180,388K
= 1.24
The cash ratio of Worthington Industries Inc has fluctuated over the past few years. It indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents.
The cash ratio was relatively low at 0.38 as of May 31, 2020, suggesting limited liquidity. Subsequently, there was a significant improvement as of August 31, 2020, with the ratio jumping to 1.73, indicating a healthier liquidity position.
From November 2020 to August 2021, the cash ratio remained relatively stable between 1.54 and 0.76 before declining to 0.27 as of November 30, 2021. This decrease raised concerns about the company's ability to cover its short-term obligations with cash on hand.
The ratio improved slightly to 0.40 by February 28, 2023, showing some progress in liquidity management. However, it dipped to 0.23 as of August 31, 2023, highlighting potential liquidity challenges.
The cash ratio then increased to 1.12 as of February 29, 2024, signaling a significant improvement in liquidity. Subsequently, the ratio continued to rise, reaching 1.24 by February 28, 2025, indicating the company's enhanced ability to meet short-term obligations with available cash.
Overall, Worthington Industries Inc's cash ratio has shown fluctuations, with periods of both strength and weakness in liquidity management. It is important for the company to maintain a healthy cash ratio to ensure financial stability and meet its short-term financial obligations effectively.
Peer comparison
Feb 28, 2025