Worthington Industries Inc (WOR)
Return on equity (ROE)
| 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 |
| Total stockholders’ equity | US$ in thousands | 1,696,010 | 1,480,750 | 1,398,190 | 820,821 | 831,246 |
| ROE | 15.13% | 25.62% | 51.77% | 9.60% | 18.46% |
May 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $256,528K ÷ $1,696,010K
= 15.13%
The return on equity (ROE) of Worthington Enterprises Inc. has exhibited fluctuations over the past five years. In 2023, the ROE decreased to 15.13% from 25.62% in 2022. This decline may indicate that the company's ability to generate profits from the shareholders' equity has weakened. The ROE was notably high in 2021 at 51.77%, suggesting that the company was effectively utilizing its equity to generate profits. However, in 2020, the ROE dropped to 9.60%, signaling a significant decrease in the company's ability to generate returns from shareholders' equity. The ROE then increased to 18.46% in 2019, indicating a recovery from the previous year. Overall, the trend in ROE suggests some volatility in the company's ability to effectively utilize shareholders' equity for generating profits over the years.
Peer comparison
May 31, 2023