Worthington Industries Inc (WOR)
Return on equity (ROE)
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 110,624 | 256,528 | 379,386 | 723,795 | 78,796 |
| Total stockholders’ equity | US$ in thousands | 888,879 | 1,696,010 | 1,480,750 | 1,398,190 | 820,821 |
| ROE | 12.45% | 15.13% | 25.62% | 51.77% | 9.60% |
May 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $110,624K ÷ $888,879K
= 12.45%
The return on equity (ROE) for Worthington Industries Inc has shown significant fluctuations over the past five years. In May 2020, the ROE was at 9.60%, indicating a moderate level of profitability relative to shareholders' equity. However, there was a substantial increase to 51.77% by May 2021, suggesting a significant improvement in the company's ability to generate profits from shareholders' investments.
Although there was a decrease in ROE to 25.62% by May 2022, the metric remained relatively high, indicating continued strong performance in utilizing equity to generate returns. By May 2023, the ROE further declined to 15.13%, indicating a decrease in profitability compared to the previous year. The latest data point from May 2024 shows an ROE of 12.45%, signifying a further decrease in the company's ability to generate profits relative to shareholders' equity.
Overall, Worthington Industries Inc's ROE has displayed volatility over the past five years, with periods of significant growth followed by moderation and subsequent declines. It is essential for stakeholders to monitor this metric closely to assess the company's efficiency in utilizing equity to generate profits and track its financial performance over time.
Peer comparison
May 31, 2024