Worthington Industries Inc (WOR)
Profitability ratios
Return on sales
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 22.88% | 13.49% | 13.64% | 20.15% | 14.49% |
| Operating profit margin | -5.90% | 8.02% | 10.14% | 32.10% | 7.82% |
| Pretax margin | 5.94% | 7.02% | 9.81% | 28.94% | 3.62% |
| Net profit margin | 8.88% | 5.22% | 7.24% | 22.82% | 2.58% |
Worthington Industries Inc's profitability ratios have shown fluctuating trends over the years. The gross profit margin, a measure of a company's overall profitability, increased from 14.49% in May 31, 2020 to 22.88% in May 31, 2024, indicating improved efficiency in production and cost management.
The operating profit margin, which reflects the company's ability to generate profits from its core operations, experienced a significant increase from 7.82% in May 31, 2020 to 32.10% in May 31, 2021, but then saw a decline to -5.90% in May 31, 2024, suggesting potential challenges with controlling operating expenses.
Similarly, the pretax margin, representing the proportion of revenue that translates into pre-tax profits, showed a notable rise from 3.62% in May 31, 2020 to 28.94% in May 31, 2021, but subsequently decreased to 5.94% in May 31, 2024, signaling a potential impact of taxes and non-operational charges on the bottom line.
The net profit margin, a key indicator of a company's profitability after all expenses have been deducted, increased from 2.58% in May 31, 2020 to 8.88% in May 31, 2024, showing an improvement in bottom-line performance.
Overall, while the gross profit margin and net profit margin have shown positive growth, the operating profit margin and pretax margin have fluctuated, indicating potential challenges in managing operating expenses and other costs that require further analysis to ensure sustained profitability for Worthington Industries Inc.
Return on investment
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -4.48% | 10.80% | 14.59% | 30.18% | 10.26% |
| Return on assets (ROA) | 6.75% | 7.03% | 10.41% | 21.46% | 3.38% |
| Return on total capital | 8.53% | 2.15% | 36.85% | 20.59% | 29.14% |
| Return on equity (ROE) | 12.45% | 15.13% | 25.62% | 51.77% | 9.60% |
Worthington Industries Inc's profitability ratios show fluctuations over the past five years. The Operating Return on Assets (Operating ROA) has seen significant variations, ranging from a high of 30.18% in May 2021 to a negative figure of -4.48% in May 2024. This indicates that the company's operating income generated from its assets has been inconsistent.
The Return on Assets (ROA) also reflects this volatility, with a notable increase in May 2021 to 21.46%, followed by a decline in subsequent years. This ratio signifies the company's ability to generate profit from its total assets, which has shown mixed performance in recent years.
The Return on Total Capital, showcasing the return earned on all invested capital including debt and equity, has exhibited a wide range of fluctuations. The ratio peaked at 36.85% in May 2022 but plummeted to 2.15% in May 2023, indicating varying efficiency in utilizing total capital to generate returns.
Lastly, the Return on Equity (ROE) demonstrates the profitability generated for shareholders. The ROE has fluctuated over the years, ranging from a high of 51.77% in May 2021 to a low of 12.45% in May 2024. This suggests that the company's ability to generate profit from shareholders' equity has been inconsistent.
Overall, Worthington Industries Inc's profitability ratios show a mixed performance over the past five years, indicating varying levels of efficiency in generating returns for both assets and shareholders.