Worthington Industries Inc (WOR)
Profitability ratios
Return on sales
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 13.49% | 13.64% | 20.15% | 14.49% | 12.77% |
| Operating profit margin | 4.32% | 6.28% | 5.28% | 0.74% | 3.85% |
| Pretax margin | 6.77% | 9.43% | 28.38% | 3.44% | 5.23% |
| Net profit margin | 5.22% | 7.24% | 22.82% | 2.58% | 4.08% |
The profitability ratios of Worthington Enterprises Inc. show fluctuations over the past five years.
The gross profit margin, which reflects the company's ability to generate profit from its revenue after accounting for the cost of goods sold, decreased slightly from 2019 to 2023. This suggests that the company may be facing challenges managing its production or sourcing costs, impacting its overall profitability.
The operating profit margin, indicating the company's profitability from its core business activities, also experienced a decline over the same period. This may indicate that the company's operating expenses have increased relative to its revenue, impacting its bottom line.
The pretax margin, which measures the proportion of each dollar of revenue that the company is able to convert into pre-tax profit, shows significant fluctuations. The substantial decrease from 2021 to 2023 is noteworthy, indicating a possible impact from changes in tax liabilities or significant non-operating expenses.
The net profit margin, a key indicator of overall profitability, also exhibited variability. The substantial decrease from 2021 to 2023 could raise concerns about the company's ability to control its costs and expenses and generate adequate net income.
Overall, the trend in Worthington Enterprises Inc.'s profitability ratios reflects changes in its cost management, revenue generation, and overall profitability over the past five years. Further analysis of the company's operational and financial activities would be necessary to fully understand the drivers behind these fluctuations.
Return on investment
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.82% | 9.04% | 4.96% | 0.96% | 5.77% |
| Return on assets (ROA) | 7.03% | 10.41% | 21.46% | 3.38% | 6.11% |
| Return on total capital | 15.07% | 24.15% | 44.13% | 8.99% | 16.42% |
| Return on equity (ROE) | 15.13% | 25.62% | 51.77% | 9.60% | 18.46% |
Based on the provided profitability ratios of Worthington Enterprises Inc., we observe the following trends over the past five years:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA has shown a moderate decrease from 8.65% in 2022 to 6.42% in 2023, indicating a decline in the company's ability to generate operating income from its assets.
2. Return on Assets (ROA):
- The ROA exhibited significant fluctuations, with a sharp decline from 21.46% in 2021 to 3.38% in 2020, followed by a recovery to 10.41% in 2022 and a subsequent decrease to 7.03% in 2023. These fluctuations suggest fluctuations in the company's ability to generate profits from its total assets.
3. Return on Total Capital:
- The Return on Total Capital demonstrates consistent fluctuations over the years, with a marked increase from 15.10% in 2019 to 23.77% in 2022, followed by a decline to 16.55% in 2023. This fluctuation reflects changes in the company's ability to generate returns from its total capital.
4. Return on Equity (ROE):
- The ROE has shown a similar pattern of fluctuations, with a substantial decrease from 51.77% in 2021 to 9.60% in 2020, followed by an increase to 25.62% in 2022 and a subsequent decrease to 15.13% in 2023. This indicates variability in the company's ability to generate returns for its equity shareholders.
Overall, the company's profitability ratios demonstrate volatile performance, indicating fluctuations in its ability to generate operating income, profits from total assets, returns on total capital, and returns for its equity shareholders over the past five years. This variability may require further analysis to understand the underlying factors influencing the company's profitability.