Worthington Industries Inc (WOR)
Quick ratio
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 422,268 | 34,485 | 640,311 | 147,198 | 92,363 |
| Short-term investments | US$ in thousands | 32,678 | — | 233,126 | — | — |
| Receivables | US$ in thousands | 697,085 | 878,049 | 641,922 | 349,414 | 512,838 |
| Total current liabilities | US$ in thousands | 717,558 | 932,261 | 787,901 | 388,238 | 698,020 |
| Quick ratio | 1.61 | 0.98 | 1.92 | 1.28 | 0.87 |
May 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($422,268K
+ $32,678K
+ $697,085K)
÷ $717,558K
= 1.61
The quick ratio measures a company's ability to meet its short-term liabilities with its most liquid assets. Worthington Enterprises Inc.'s quick ratio has fluctuated over the past five years, indicating changes in its liquidity position.
In 2019, the quick ratio was 0.97, indicating that the company had less in liquid assets to cover its current liabilities. However, the quick ratio improved in 2020 to 1.46 and further to 1.72 in 2021, suggesting an increased ability to meet short-term obligations.
The ratio dipped to 1.08 in 2022, potentially signaling a decrease in liquidity, but rebounded significantly to 1.75 in 2023, indicating a strong ability to cover short-term liabilities with liquid assets. This improvement is a positive sign for the company's financial health, as it suggests better liquidity and a reduced risk of insolvency in the short term.
Peer comparison
May 31, 2023