Worthington Industries Inc (WOR)
Quick ratio
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 250,075 | 244,225 | 454,946 | 34,485 | 640,311 |
| Short-term investments | US$ in thousands | — | — | — | — | 233,126 |
| Receivables | US$ in thousands | 228,544 | 217,117 | 224,549 | 878,049 | 641,922 |
| Total current liabilities | US$ in thousands | 196,842 | 178,376 | 717,558 | 932,261 | 787,901 |
| Quick ratio | 2.43 | 2.59 | 0.95 | 0.98 | 1.92 |
May 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($250,075K
+ $—K
+ $228,544K)
÷ $196,842K
= 2.43
The quick ratio of Worthington Industries Inc. exhibits notable fluctuations over the analyzed period from May 31, 2021, to May 31, 2025.
In May 2021, the quick ratio stood at 1.92, indicating that the company held approximately $1.92 in liquid assets (excluding inventories) for every dollar of current liabilities, suggesting a comfortable liquidity position at that time. By May 2022, this ratio declined sharply to 0.98, approaching a 1-to-1 ratio, which implies a considerable reduction in readily available liquid assets relative to short-term liabilities. This trend continued into May 2023, with the ratio further decreasing slightly to 0.95, thereby maintaining a similar liquidity stance characterized by a tight margin of liquid assets compared to current liabilities.
However, a significant recovery is observed in May 2024, when the quick ratio increased markedly to 2.59. This escalation indicates an improved liquidity position, with the company possessing substantially more liquid assets relative to its current liabilities, potentially reflecting improved cash holdings or receivables. The ratio remains high at 2.43 in May 2025, suggesting that the company's liquidity remains strong and has stabilized at a comfortable level following the previous declines.
Overall, the trend from 2021 through 2023 reveals a period of tightening liquidity, culminating in near-equal quick assets and current liabilities in 2022 and 2023. The subsequent increase in 2024 and 2025 indicates a significant strengthening in liquidity, which could be the result of optimized cash management, improved receivables collection, or other strategic financial adjustments. This pattern underscores a shift from a period of liquidity pressure to a more robust liquidity position in the recent years.
Peer comparison
May 31, 2025