Worthington Industries Inc (WOR)
Profitability ratios
Return on sales
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 27.65% | 22.88% | 13.49% | 13.64% | 20.15% |
| Operating profit margin | 8.23% | -5.90% | 8.02% | 10.14% | 32.10% |
| Pretax margin | 11.16% | 5.94% | 7.02% | 9.81% | 28.94% |
| Net profit margin | 8.33% | 8.88% | 5.22% | 7.24% | 22.82% |
The profitability ratios of Worthington Industries Inc. over the specified periods reveal notable fluctuations and trends. The gross profit margin experienced a decline from 20.15% in May 2021 to 13.64% in May 2022, followed by a marginal decrease to 13.49% in May 2023. However, a significant improvement is observed in the subsequent years, with the margin rising to 22.88% in May 2024 and reaching 27.65% in May 2025. This indicates a substantial enhancement in the company's ability to manage production costs relative to sales in the most recent fiscal periods.
Operating profit margin showcased a contrasting pattern, starting at 32.10% in May 2021 but dropping dramatically to 10.14% in May 2022 and further to 8.02% in May 2023. The decline persisted into the 2024 period, where the operating margin turned negative at -5.90%, highlighting an operational loss. Nonetheless, a recovery is evident with the margin improving to 8.23% by May 2025, suggesting operational efficiency was regained and profitability was restored.
Pre-tax margins followed a similar downward trend, decreasing from 28.94% in May 2021 to 9.81% in May 2022, and further to 7.02% in May 2023. The margin continued to decline slightly in 2024 to 5.94%, but then increased to 11.16% in May 2025, signaling improved earnings before taxes and possibly reflecting favorable non-operating factors or a reduction in expenses.
Net profit margin data indicates a significant decline from 22.82% in May 2021 to 7.24% in May 2022 and 5.22% in May 2023. The margins improved in the subsequent periods, rising to 8.88% in May 2024 and stabilizing around 8.33% in May 2025. This pattern suggests that while Worthington Industries faced notable profitability challenges after 2021, particularly in 2022 and 2023, it was able to recover and maintain improved net profitability levels in the recent years.
Overall, the company's profitability profile exhibits periods of substantial decline followed by notable recoveries, reflecting both challenges and strategic adaptations in managing costs and operational efficiencies. The recent upward trend in gross, pre-tax, and net profit margins indicates a potential return to improved profitability trajectories.
Return on investment
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.60% | -4.48% | 10.80% | 14.59% | 30.18% |
| Return on assets (ROA) | 5.67% | 6.75% | 7.03% | 10.41% | 21.46% |
| Return on total capital | 0.00% | 8.53% | 2.15% | 36.85% | 20.59% |
| Return on equity (ROE) | 10.25% | 12.45% | 15.13% | 25.62% | 51.77% |
The profitability ratios of Worthington Industries Inc. over the period from May 31, 2021, to May 31, 2025, depict a variable financial performance.
The Operating Return on Assets (Operating ROA) experienced a notable decline from 30.18% in 2021 to 14.59% in 2022, followed by a further decrease to 10.80% in 2023. In 2024, the ratio turned negative at -4.48%, indicating an operating loss relative to total assets, before rebounding to 5.60% in 2025. This trend suggests a significant contraction in operating efficiency and profitability, with a temporary period of negative profitability in 2024.
Similarly, the Return on Assets (ROA), which measures net income relative to total assets, reflected a decreasing trend from 21.46% in 2021 to 10.41% in 2022, and further down to 7.03% in 2023. The ratio stabilized somewhat in 2024 at 6.75%, and continued a modest decline to 5.67% in 2025, indicating a downward trend in overall net profitability, although the decline appears less severe compared to Operating ROA.
The Return on Total Capital displayed a contrasting pattern. It was relatively high at 20.59% in 2021 but surged sharply to 36.85% in 2022, reflecting improved capital efficiency. However, the ratio plummeted to 2.15% in 2023, rebounded modestly to 8.53% in 2024, and ultimately reached zero in 2025. The sudden fluctuation and eventual zero value in 2025 imply either a significant reduction in capital employed or a substantial decline in profitability margins relative to total capital.
The Return on Equity (ROE), indicating net income generated per shareholder equity, was strongest in 2021 at 51.77%, then decreased substantially in 2022 to 25.62%, followed by a further decline to 15.13% in 2023. In 2024, the ROE continued its downward trend to 12.45%, and by 2025, it settled at 10.25%, demonstrating a continuous erosion in shareholder profitability margins over the period.
Overall, the data reflects a period of declining profitability for Worthington Industries Inc., characterized by decreasing ROA and ROE figures, significant fluctuations in return on total capital, and a temporary negative operating return, indicating challenges in maintaining consistent profitability levels during the reporting period.