Worthington Industries Inc (WOR)
Quick ratio
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 244,225 | 454,946 | 34,485 | 640,311 | 147,198 |
| Short-term investments | US$ in thousands | — | — | — | 233,126 | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 178,376 | 717,558 | 932,261 | 787,901 | 388,238 |
| Quick ratio | 1.37 | 0.63 | 0.04 | 1.11 | 0.38 |
May 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($244,225K
+ $—K
+ $—K)
÷ $178,376K
= 1.37
The quick ratio of Worthington Industries Inc has demonstrated significant fluctuations over the past five years. As of May 31, 2020, the quick ratio stood at 0.38, indicating a relatively low level of current assets that could be quickly converted to cash to cover current liabilities.
Subsequently, there was a substantial improvement in the quick ratio by May 31, 2021, reaching a healthier level of 1.11. This suggests that the company had a better ability to meet its short-term obligations using its most liquid assets.
However, the quick ratio dropped sharply to a concerning level of 0.04 by May 31, 2022, signaling potential liquidity challenges as the proportion of quick assets to current liabilities decreased significantly.
By May 31, 2023, there was a partial recovery in the quick ratio to 0.63, indicating some improvement in the company's liquidity position. This improvement suggests that Worthington Industries Inc may have taken steps to bolster its short-term liquidity.
Finally, as of May 31, 2024, the quick ratio surged to a robust 1.37, reflecting a strong ability to cover immediate liabilities with liquid assets. Overall, the erratic fluctuations in the quick ratio highlight the importance of closely monitoring Worthington Industries Inc's liquidity position to ensure stability and financial health in the future.
Peer comparison
May 31, 2024