Worthington Industries Inc (WOR)
Operating profit margin
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 212,367 | 329,268 | 167,473 | 22,489 | 144,764 |
| Revenue | US$ in thousands | 4,916,390 | 5,242,220 | 3,171,430 | 3,059,120 | 3,759,560 |
| Operating profit margin | 4.32% | 6.28% | 5.28% | 0.74% | 3.85% |
May 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $212,367K ÷ $4,916,390K
= 4.32%
The operating profit margin of Worthington Enterprises Inc. has shown variability over the past five years. In May 2023, the operating profit margin decreased to 4.77% from 6.01% in May 2022. This represents a decrease in the company's ability to generate profits from its core business activities. When compared to May 2021, where the operating profit margin was 9.08%, there has been a clear decline in the company's operational efficiency.
The operating profit margin measures the company's ability to generate profits from its core operations and is indicative of its operational efficiency. The decrease in the operating profit margin from 2022 to 2023 suggests that the company may be experiencing challenges in controlling its operating expenses or that its revenues from core operations are not growing at a pace to sustain previous levels of profitability.
Further analysis of the company's cost structure and revenue streams would be necessary to understand the specific drivers behind the decline in the operating profit margin. Additionally, comparing the operating profit margin to industry benchmarks and its peers could provide valuable insights into Worthington Enterprises Inc.'s competitive position and efficiency in managing its operating costs.
Peer comparison
May 31, 2023