Worthington Industries Inc (WOR)
Operating return on assets (Operating ROA)
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 94,970 | -73,459 | 394,200 | 531,603 | 1,017,900 |
| Total assets | US$ in thousands | 1,695,150 | 1,638,640 | 3,650,920 | 3,643,020 | 3,373,240 |
| Operating ROA | 5.60% | -4.48% | 10.80% | 14.59% | 30.18% |
May 31, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $94,970K ÷ $1,695,150K
= 5.60%
The operating return on assets (ROA) for Worthington Industries Inc. exhibits a notable declining trend over the specified period from May 31, 2021, to May 31, 2025. On May 31, 2021, the company's operating ROA was notably high at 30.18%, reflecting robust operational efficiency and effective utilization of assets to generate operating income. However, by May 31, 2022, the operating ROA declined substantially to 14.59%, indicating a significant decrease in operational profitability relative to assets.
The downward trajectory continued into May 31, 2023, when the operating ROA further diminished to 10.80%. This sustained decline suggests persistent challenges in maintaining prior levels of operational efficiency or potential headwinds affecting profitability. By May 31, 2024, the operating ROA turned negative at -4.48%, signaling that the company's operating income was insufficient to cover its asset base, possibly due to operational losses or extraordinary expenses impacting profitability.
Despite this downturn, the trend reverses by May 31, 2025, with the operating ROA recovering to 5.60%. This increase indicates a positive development in operational performance, potentially attributable to improved operational strategies, cost management, or favorable market conditions. Overall, the data reflects considerable variability in Worthington Industries Inc.'s operating efficiency over the analyzed period, with an initial strong performance followed by a period of deterioration, a brief negative turn, and a subsequent partial recovery.
Peer comparison
May 31, 2025