Worthington Industries Inc (WOR)
Return on total capital
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 359,485 | 525,745 | 930,408 | 136,754 | 234,701 |
| Long-term debt | US$ in thousands | 689,718 | 696,345 | 710,031 | 699,516 | 598,356 |
| Total stockholders’ equity | US$ in thousands | 1,696,010 | 1,480,750 | 1,398,190 | 820,821 | 831,246 |
| Return on total capital | 15.07% | 24.15% | 44.13% | 8.99% | 16.42% |
May 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $359,485K ÷ ($689,718K + $1,696,010K)
= 15.07%
The return on total capital ratio of Worthington Enterprises Inc. has shown some fluctuation over the past five years. In May 31, 2023, the return on total capital was 16.55%, a decrease from the previous year's 23.77% in May 31, 2022. This decline may indicate a decrease in the company's ability to generate profits from its total invested capital. However, it is important to note that the current ratio of 16.55% is still relatively healthy, indicating that the company is able to generate a reasonable return for every dollar of total capital employed. Further analysis of the company's financial statements and business operations is necessary to understand the factors contributing to the fluctuation in the return on total capital.
Peer comparison
May 31, 2023