Worthington Industries Inc (WOR)
Net profit margin
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 256,528 | 379,386 | 723,795 | 78,796 | 153,455 |
| Revenue | US$ in thousands | 4,916,390 | 5,242,220 | 3,171,430 | 3,059,120 | 3,759,560 |
| Net profit margin | 5.22% | 7.24% | 22.82% | 2.58% | 4.08% |
May 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $256,528K ÷ $4,916,390K
= 5.22%
Sure, I'd be happy to help you analyze Worthington Enterprises Inc.'s net profit margin based on the provided data.
Net profit margin is a key financial ratio that measures a company's profitability by expressing its net income as a percentage of its total revenue.
Looking at the trend in Worthington Enterprises Inc.'s net profit margin over the past five years, we can observe fluctuations in the company's profitability.
In 2019, the net profit margin stood at 4.08%, indicating that for every dollar of revenue generated, the company had a net income of approximately 4 cents. This suggests a moderate level of profitability.
The following year, in 2020, the net profit margin decreased to 2.58%, signaling a significant decline in profitability. This may indicate challenges or inefficiencies within the company that affected its ability to convert revenue into profit.
However, in 2021, there was a substantial improvement in the net profit margin, surging to 22.82%. This sharp increase is noteworthy and suggests a significant boost in the company's profitability, potentially due to cost-saving measures, increased sales, or other favorable factors.
In 2022, the net profit margin settled at 7.24%, which, while lower than the exceptional performance in 2021, still represents a healthy level of profitability.
Finally, in 2023, the net profit margin decreased further to 5.22%, indicating a slight decline in profitability compared to the previous year.
Overall, the fluctuation in Worthington Enterprises Inc.'s net profit margin over the past five years reveals variations in the company's ability to effectively manage costs, generate sales, and ultimately translate revenue into profit. It may be beneficial for the company to further investigate the factors contributing to these fluctuations to sustain and improve its profitability in the future.
Peer comparison
May 31, 2023