Worthington Industries Inc (WOR)
Cash ratio
| 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 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 227,310 | 430,906 | 201,009 | 422,268 | 267,244 | 129,596 | 35,768 | 34,485 | 44,324 | 225,194 | 399,246 | 640,311 | 649,505 | 713,130 | 650,068 | 147,198 | 103,430 | 72,260 | 45,583 | 92,363 |
| Short-term investments | US$ in thousands | — | — | — | 32,678 | — | — | — | — | — | — | 259,132 | -16,857 | 220,415 | 143,850 | 287,630 | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 489,843 | 473,863 | 482,674 | 698,020 |
| Cash ratio | 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 | 0.21 | 0.15 | 0.09 | 0.13 |
February 29, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($227,310K
+ $—K)
÷ $202,288K
= 1.12
The cash ratio of Worthington Industries Inc has varied over the periods provided in the table. The cash ratio measures the company's ability to cover its short-term liabilities using its cash and cash equivalents.
Analyzing the data, we see that the cash ratio fluctuated significantly over the periods. The highest cash ratio of 1.73 was observed in August 31, 2020, indicating that the company had a strong ability to cover its short-term liabilities with its cash on hand at that time. However, the lowest cash ratio of 0.04 was noted in both August 31, 2022, and May 31, 2022, suggesting a relatively lower liquidity position during those periods.
It is essential to note that a cash ratio above 1 indicates that the company holds more cash and cash equivalents than its current liabilities, which may be seen as a positive sign of liquidity. Conversely, a ratio below 1 may imply that the company may have difficulty meeting its short-term obligations using only its cash reserves.
Overall, an analysis of Worthington Industries Inc's cash ratio reveals fluctuations in liquidity levels over the periods, which may reflect changes in the company's cash management practices or business operations impacting its ability to cover short-term liabilities with readily available funds.
Peer comparison
Feb 29, 2024