Worthington Industries Inc (WOR)
Profitability ratios
Return on sales
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 27.65% | 26.32% | 24.52% | 16.96% | 16.15% | 16.65% | 16.72% | 15.89% | 14.39% | 11.72% | 10.69% | 12.00% | 13.64% | 16.45% | 19.46% | 20.82% | 20.15% | 17.93% | 16.17% | 15.12% |
| Operating profit margin | 2.02% | 2.13% | 0.86% | 0.03% | 2.85% | 6.99% | 6.88% | 7.79% | 7.75% | 5.61% | 6.08% | 7.00% | 8.22% | 9.04% | 9.47% | 9.31% | 5.28% | 2.26% | 0.43% | 0.24% |
| Pretax margin | 11.16% | 8.11% | 6.99% | 4.03% | 6.09% | 9.91% | 9.74% | 9.23% | 7.70% | 5.76% | 5.41% | 7.53% | 9.81% | 11.69% | 13.46% | 8.85% | 28.94% | 28.12% | 26.17% | 30.83% |
| Net profit margin | 8.33% | 5.23% | 3.66% | 1.96% | 3.79% | 7.12% | 7.69% | 7.32% | 6.17% | 4.65% | 3.96% | 5.61% | 7.24% | 8.78% | 10.39% | 6.69% | 22.82% | 22.33% | 20.43% | 24.10% |
The profitability ratios for Worthington Industries Inc. over the analyzed period reveal notable trends and fluctuations. The gross profit margin experienced a steady upward trajectory from August 2020 through May 2021, rising from 15.12% to 20.15%, indicating improved core product profitability during this period. Following this peak, the gross margin demonstrated a general decline, reaching a low of 10.69% in November 2022. However, a significant reversal occurred thereafter, with the margin advancing sharply to 16.72% in November 2023 and continuing upward to an estimated 27.65% by May 2025, suggesting notable improvements in cost management or pricing strategies.
The operating profit margin reflected a similar positive trend up to August 2021, escalating from a minimal 0.24% to a robust 9.31%. Post-2021, the operating margin declined, reaching a nadir close to zero in late 2024, with a brief rebound to approximately 2% by mid-2025. This volatility indicates variable operational efficiency, potentially impacted by fluctuating sales, costs, or strategic adjustments.
Pre-tax margins followed a pattern aligned with operating margins, peaking at 30.83% in August 2020 and declining substantially thereafter, bottoming out at approximately 4% in late 2024. A recovery phase is evident with margins climbing back to around 11.16% by May 2025, which suggests an improvement in overall profitability before accounting for taxes.
Net profit margins, reflecting the bottom-line profitability, similarly peaked at 24.10% in August 2020. A downward trend ensued, reaching a low of approximately 1.96% in August 2024. Nevertheless, from the latter part of 2024 into mid-2025, net margins improved markedly to over 8%, indicating a significant recovery in net profitability.
Overall, the company's profitability ratios exhibit a pattern of initial growth during 2020 and early 2021, followed by a period of contraction and volatility through 2022 and 2023, culminating in a recovery phase from late 2024 into 2025. The recent upward movements in these ratios suggest that Worthington Industries has experienced improved efficiency and profitability prospects in the most recent periods.
Return on investment
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.37% | 1.46% | 0.61% | 0.04% | 4.94% | 15.69% | 7.40% | 8.84% | 8.83% | 7.13% | 9.84% | 11.05% | 11.83% | 11.36% | 10.99% | 9.40% | 4.96% | 2.02% | 0.40% | 0.22% |
| Return on assets (ROA) | 5.67% | 3.59% | 2.58% | 2.36% | 6.59% | 15.97% | 8.28% | 8.30% | 7.03% | 5.91% | 6.40% | 8.86% | 10.41% | 11.04% | 12.05% | 6.75% | 21.46% | 19.96% | 18.96% | 22.36% |
| Return on total capital | 13.08% | 10.23% | 5.55% | 0.58% | -3.49% | 1.54% | 2.64% | -0.04% | 4.14% | 7.25% | 7.52% | 17.03% | 21.29% | 26.07% | 28.07% | 16.93% | 10.99% | 3.78% | 0.55% | 12.15% |
| Return on equity (ROE) | 10.24% | 6.43% | 4.68% | 4.30% | 12.45% | 29.86% | 16.55% | 16.26% | 15.13% | 13.05% | 14.33% | 20.56% | 25.62% | 28.43% | 28.65% | 16.49% | 51.77% | 47.75% | 44.96% | 50.64% |
The profitability ratios of Worthington Industries Inc. reveal significant fluctuations over the analyzed periods, reflecting evolving operational performance and market conditions.
Starting with the Operating Return on Assets (Operating ROA), there was a marked improvement from minimal levels early in the period—0.22% as of August 31, 2020—to a peak of 15.69% on February 29, 2024. This substantial increase indicates episodes of enhanced operational efficiency and profit generation relative to operating assets. However, subsequent periods show a sharp decline, with the ratio dropping to as low as 0.04% in August 2024 and then recovering slightly to 1.37% by May 2025. The variability suggests periods of operational challenges or strategic shifts impacting earning capacity relative to assets.
The broader Return on Assets (ROA) maintains a generally high level initially, with values such as 22.36% in August 2020, but then exhibits a declining trend over time, reaching lows around 2.36% in August 2024 before some partial recovery to 5.67% in May 2025. The initial high ROA reflects strong profitability from total assets, but the decreasing trend may indicate lower efficiency or profitability in recent periods, possibly due to external economic factors or internal operational issues.
Return on Total Capital (ROTC) displays more volatility. It began with a modest 12.15% in August 2020, then experienced substantial fluctuations, peaking notably at 28.07% in November 2021. The ratio then declined sharply to negative territory (-3.49%) in May 2024, signaling periods where the company's return on invested capital was insufficient to cover costs or resulted in losses on capital employed. Recent figures suggest some stabilization, with ROTC rising again to 13.08% in May 2025.
Return on Equity (ROE) shows a high level of profitability early on, with values exceeding 50% in 2020, but followed by a declining trend, reaching a low of 4.30% in August 2024. Nonetheless, a notable rebound is observed to 10.24% in May 2025. The fluctuations in ROE imply changes in net profitability, equity base, and possibly leverage effects over the analyzed periods.
Overall, the profitability ratios illustrate a pattern of high profitability in the earlier years, followed by periods of decline, volatility, and partial recoveries. The shifts in ratios likely mirror operational adjustments, market dynamics, and internal strategic changes impacting the company's ability to generate profit efficiently relative to its assets, capital, and equity. The recent data suggests a challenging environment with signs of recovery toward the latest periods, but continued variability indicates ongoing operational and financial adjustments.