Worthington Industries Inc (WOR)
Quick ratio
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 222,844 | 193,805 | 178,547 | 244,225 | 227,310 | 430,906 | 201,009 | 454,946 | 267,244 | 129,596 | 35,768 | 34,485 | 44,324 | 225,194 | 399,246 | 640,311 | 649,505 | 713,130 | 650,068 | 147,198 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 259,132 | -16,857 | 220,415 | 143,850 | 287,630 | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 180,388 | 169,464 | 166,238 | 178,376 | 202,288 | 945,342 | 868,939 | 717,558 | 664,809 | 660,891 | 784,290 | 932,261 | 1,026,700 | 820,158 | 864,257 | 787,901 | 637,261 | 557,174 | 542,184 | 388,238 |
| Quick ratio | 1.24 | 1.14 | 1.07 | 1.37 | 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 |
February 28, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($222,844K
+ $—K
+ $—K)
÷ $180,388K
= 1.24
The quick ratio, also known as the acid-test ratio, is a measure of a company's ability to meet its short-term obligations with its most liquid assets. Worthington Industries Inc's quick ratio fluctuated over the given period:
- The quick ratio was 0.38 as of May 31, 2020, indicating that the company had insufficient liquid assets to cover its current liabilities.
- By August 31, 2020, the quick ratio improved significantly to 1.73, suggesting the company had an adequate level of liquid assets to meet short-term obligations.
- From November 30, 2020, to November 30, 2022, the quick ratio decreased gradually, indicating a potential deterioration in the company's ability to cover short-term obligations with liquid assets.
- The quick ratio hit a low of 0.04 as of February 28, 2022, signaling a concerning liquidity position.
- However, from February 28, 2023, to February 28, 2025, the quick ratio showed an increasing trend, reaching above 1.00, which is generally considered a healthy level indicating the company's improved ability to meet short-term obligations with liquid assets.
Overall, the quick ratio of Worthington Industries Inc displayed variability over the period, with periods of both strength and weakness in its liquidity position. It is essential for the company to maintain a healthy quick ratio to ensure its short-term financial stability.
Peer comparison
Feb 28, 2025