Worthington Industries Inc (WOR)
Current ratio
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,868,340 | 1,785,650 | 1,967,990 | 983,179 | 1,165,910 |
| Total current liabilities | US$ in thousands | 717,558 | 932,261 | 787,901 | 388,238 | 698,020 |
| Current ratio | 2.60 | 1.92 | 2.50 | 2.53 | 1.67 |
May 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,868,340K ÷ $717,558K
= 2.60
The current ratio of Worthington Enterprises Inc. has varied over the past five years, ranging from 1.67 in 2019 to 2.60 in 2023. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A higher current ratio indicates a stronger ability to cover short-term liabilities.
In 2023, Worthington Enterprises Inc. exhibits a strong current ratio of 2.60, showing an improvement from the previous year. This implies that the company has $2.60 in current assets for every $1 of current liabilities, indicating a healthy liquidity position.
Conversely, in 2019, the current ratio was 1.67, indicating a relatively lower ability to cover short-term obligations with current assets. However, it's worth noting that ratios should be analyzed in conjunction with other financial metrics to gain a comprehensive understanding of the company's financial health. This trend in the current ratio should prompt further exploration into the company's asset and liability management over the years.
Peer comparison
May 31, 2023