Worthington Industries Inc (WOR)
Return on total capital
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 75,782 | 36,470 | 545,597 | 287,933 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 937,187 | 888,879 | 1,696,010 | 1,480,750 | 1,398,190 |
| Return on total capital | 0.00% | 8.53% | 2.15% | 36.85% | 20.59% |
May 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $937,187K)
= 0.00%
The data provided indicates that Worthington Industries Inc.'s return on total capital has experienced significant fluctuations over the period from May 31, 2021, to May 31, 2025.
As of May 31, 2021, the company's return on total capital stood at 20.59%, suggesting a relatively strong efficiency in utilizing its total capital to generate earnings. This figure increased substantially by May 31, 2022, reaching 36.85%, which signifies a period of optimal capital utilization and high profitability relative to the capital invested.
However, a dramatic decline is observed by May 31, 2023, with the return dropping sharply to just 2.15%. This reduction indicates a potential deterioration in operational performance or increased capital costs, significantly impacting the company’s ability to generate earnings from its invested capital.
The subsequent period shows a partial recovery, with the return rising to 8.53% by May 31, 2024. Although this denotes some improvement, it remains markedly lower than the peak levels observed in 2022 and well below the 2021 figure.
By May 31, 2025, the return on total capital reaches 0.00%, implying either a complete erosion of earnings generated from its total capital base or possibly the cessation of operations or capital deployment leading to a zero return scenario.
Overall, the trend reflects heightened volatility in Worthington Industries Inc.'s ability to generate returns from its total capital. The initial high returns in 2021 and 2022 suggest periods of profitability and efficient capital use, while the subsequent sharp decline indicates significant challenges or changes impacting operational performance. The current zero-return position underscores a concerning total loss of capital productivity as of May 2025.
Peer comparison
May 31, 2025