Worthington Industries Inc (WOR)
Liquidity ratios
| Nov 30, 2024 | Aug 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 | Feb 29, 2020 | Nov 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.56 | 3.47 | 3.42 | 1.88 | 1.95 | 2.60 | 2.57 | 2.43 | 2.17 | 1.92 | 1.85 | 2.33 | 2.28 | 2.50 | 2.65 | 3.03 | 3.26 | 2.53 | 2.15 | 2.13 |
| Quick ratio | 2.29 | 2.12 | 2.22 | 1.14 | 1.04 | 1.61 | 1.50 | 1.28 | 1.09 | 0.98 | 0.88 | 1.17 | 1.59 | 1.61 | 2.20 | 2.34 | 2.51 | 1.28 | 1.20 | 1.19 |
| Cash ratio | 1.14 | 1.07 | 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 |
The current ratio of Worthington Industries Inc has fluctuated over the past few years, indicating changes in the company's liquidity position. It increased from 2.13 as of November 30, 2019, to a peak of 3.56 as of November 30, 2024, before decreasing to 2.17 as of August 31, 2022. The ratio then showed some instability, with values between 1.85 and 2.60 until November 30, 2023. It rose sharply to 3.42 by February 29, 2024, and further improved to 3.47 by August 31, 2024.
The quick ratio, which provides a more stringent assessment of liquidity excluding inventory, also displayed fluctuations. It ranged from 1.19 as of November 30, 2019, to a low of 0.88 as of February 28, 2022, and then gradually increased to 2.29 by November 30, 2024. There were noticeable peaks and dips in the quick ratio, suggesting variations in the company's ability to cover its short-term obligations without relying on inventory.
In terms of the cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, Worthington Industries Inc experienced fluctuations as well. The ratio was low at 0.15 as of November 30, 2019, before increasing to 1.73 as of August 31, 2020. It then gradually decreased to 0.05 by August 31, 2022, and showed some volatility until it reached 1.14 by November 30, 2024.
Overall, fluctuations in the current, quick, and cash ratios of Worthington Industries Inc indicate changes in its liquidity position over time, highlighting the importance of closely monitoring these ratios to assess the company's ability to meet its short-term financial obligations.
Additional liquidity measure
| Nov 30, 2024 | Aug 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 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 102.08 | 95.05 | 55.33 | 135.25 | 104.26 | 68.12 | 70.37 | 60.49 | 65.05 | 68.45 | 80.39 | 91.50 | 84.72 | 73.50 | 68.92 | 52.64 | 57.18 | 63.75 | 54.11 | 56.98 |
The cash conversion cycle for Worthington Industries Inc fluctuated over the period from November 30, 2019, to November 30, 2024. The cash conversion cycle measures how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
In November 2019, the cash conversion cycle stood at 56.98 days and decreased to 54.11 days by February 2020, indicating an improvement in efficiency. However, there was a subsequent increase to 63.75 days by May 2020. The cycle decreased again to 52.64 days by November 2020, showcasing better management of working capital.
There were fluctuations in the cash conversion cycle in subsequent periods, with notable increases in August 2021 (84.72 days) and November 2021 (91.50 days), indicating potential challenges in managing working capital efficiently during those times.
The cycle decreased to 55.33 days by February 2024 but increased to 102.08 days by November 2024, possibly signaling inventory management issues or delays in sales collection.
Overall, the trend of the cash conversion cycle for Worthington Industries Inc shows variability, which may indicate changing business conditions, inventory management challenges, or shifts in sales collection efficiency over the analyzed period.