Worthington Industries Inc (WOR)
Quick ratio
| 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 | US$ in thousands | 193,805 | 178,547 | 227,310 | 430,906 | 201,009 | 422,268 | 267,244 | 129,596 | 35,768 | 34,485 | 44,324 | 225,194 | 399,246 | 640,311 | 649,505 | 713,130 | 650,068 | 147,198 | 103,430 | 72,260 |
| Short-term investments | US$ in thousands | — | — | — | — | — | 32,678 | — | — | — | — | — | — | 259,132 | -16,857 | 220,415 | 143,850 | 287,630 | — | — | — |
| Receivables | US$ in thousands | 194,342 | 173,208 | 221,787 | 646,337 | 700,880 | 697,085 | 731,518 | 714,502 | 820,663 | 878,049 | 859,411 | 738,312 | 718,368 | 641,922 | 529,119 | 445,183 | 425,425 | 349,414 | 483,893 | 489,785 |
| Total current liabilities | US$ in thousands | 169,464 | 166,238 | 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 | 489,843 | 473,863 |
| 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 |
November 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($193,805K
+ $—K
+ $194,342K)
÷ $169,464K
= 2.29
The quick ratio of Worthington Industries Inc has displayed some fluctuations over the past few years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
From February 2020 to February 2021, the quick ratio showed an improving trend, increasing from 1.20 to 2.20. This indicates a strengthened ability to cover its current liabilities with its quick assets during this period.
However, from May 2021 to February 2022, there was a notable decline in the quick ratio, dropping from 1.61 to 0.88. This indicates a potential strain on the company's liquidity position and its ability to fulfill short-term obligations without relying on the sale of inventory.
Subsequently, there was a recovery in the quick ratio from February 2022 to February 2024, with the ratio increasing to 2.22 by February 2024. This improvement suggests a healthier liquidity position and a better ability to meet short-term obligations without relying heavily on inventory liquidation.
Overall, it is important for Worthington Industries Inc to maintain a stable quick ratio above 1.0 to ensure it can cover its short-term liabilities effectively, without compromising its financial health. Monitoring the quick ratio over time can provide insights into the company's liquidity position and its ability to weather short-term financial challenges.
Peer comparison
Nov 30, 2024