Worthington Industries Inc (WOR)
Return on equity (ROE)
| 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 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 60,390 | 42,727 | 38,769 | 110,622 | 272,311 | 296,636 | 288,552 | 256,528 | 206,877 | 216,894 | 310,977 | 379,386 | 412,689 | 423,956 | 239,611 | 723,795 | 626,415 | 574,117 | 700,247 | 78,796 |
| Total stockholders’ equity | US$ in thousands | 938,521 | 912,958 | 901,353 | 888,879 | 912,096 | 1,792,810 | 1,774,620 | 1,696,010 | 1,585,430 | 1,513,390 | 1,512,600 | 1,480,750 | 1,451,370 | 1,479,800 | 1,453,340 | 1,398,190 | 1,311,790 | 1,276,900 | 1,382,780 | 820,821 |
| ROE | 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% | 9.60% |
February 28, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $60,390K ÷ $938,521K
= 6.43%
From the provided data, it is evident that Worthington Industries Inc's return on equity (ROE) has exhibited fluctuations over the periods mentioned.
The ROE started at 9.60% as of May 31, 2020, reflecting the profitability generated from shareholders' equity. Subsequently, there was a significant increase to 50.64% by August 31, 2020, indicating a substantial boost in efficiency in generating profits relative to the shareholders' investment.
The ROE remained high over the following periods, ranging between 44% and 51.77% until May 31, 2021. However, there was a notable decrease to 16.49% by August 31, 2021, suggesting a potential decline in efficiency in utilizing equity to generate profits.
The trend continued with fluctuating ROE figures between 16.26% and 29.86% until the most recent data point on February 28, 2025, where the ROE stood at 6.43%. This indicates a downward trend in ROE from its peak level, which could imply challenges in maintaining profitability relative to the shareholders' equity.
It is essential for Worthington Industries Inc to closely monitor its ROE performance and implement strategic measures to improve efficiency in generating profits from the equity base to ensure sustainable growth and maximize shareholder value in the long run.
Peer comparison
Feb 28, 2025