Worthington Industries Inc (WOR)
Return on equity (ROE)
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 96,053 | 110,624 | 256,528 | 379,386 | 723,795 |
| Total stockholders’ equity | US$ in thousands | 937,187 | 888,879 | 1,696,010 | 1,480,750 | 1,398,190 |
| ROE | 10.25% | 12.45% | 15.13% | 25.62% | 51.77% |
May 31, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $96,053K ÷ $937,187K
= 10.25%
The analysis of Worthington Industries Inc.'s return on equity (ROE) over the specified period reveals a consistent downward trend from May 31, 2021, to May 31, 2025. In the fiscal year ended May 31, 2021, the company's ROE was notably high at 51.77%, indicating a strong ability to generate profit relative to shareholders' equity during that period. However, by May 31, 2022, ROE declined substantially to 25.62%, suggesting a reduction in profitability or a potential increase in equity base without commensurate profit growth.
This downward trajectory continued into subsequent years, with ROE reaching 15.13% in May 31, 2023, indicating further erosion in the company's efficiency in utilizing shareholders’ equity to produce earnings. The decline persisted with ROE decreasing to 12.45% by May 31, 2024, and further down to 10.25% by May 31, 2025.
The declining ROE figures over this period could imply multiple underlying factors, including diminishing net income, increased equity base, or a combination of both. Such a trend warrants a thorough investigation into the company’s financial strategies, operational efficiencies, and industry conditions. Overall, the data reflects a significant reduction in the company's profitability relative to shareholders’ equity over the analyzed years, from a peak of over 50% to just above 10%, indicating a potential decrease in operational efficiency or profitability margins.
Peer comparison
May 31, 2025