Worthington Industries Inc (WOR)
Return on total capital
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 75,782 | 36,470 | 545,597 | 287,933 | 239,174 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 888,879 | 1,696,010 | 1,480,750 | 1,398,190 | 820,821 |
| Return on total capital | 8.53% | 2.15% | 36.85% | 20.59% | 29.14% |
May 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $75,782K ÷ ($—K + $888,879K)
= 8.53%
Worthington Industries Inc's return on total capital has shown fluctuations over the past five years. In May 2020, the return on total capital was strong at 29.14%, indicating the company efficiently utilized its total capital to generate profits. However, there was a notable decrease in this metric by May 2021, dropping to 20.59%.
The company demonstrated a significant improvement in its return on total capital by May 2022, reaching 36.85%, which suggests a commendable performance in maximizing returns from the capital invested. In contrast, there was a sharp decline in the return on total capital by May 2023, plunging to 2.15%, signaling challenges or inefficiencies in capital allocation during that period.
By May 2024, there was a modest recovery in the return on total capital to 8.53%. Overall, the fluctuating trend in Worthington Industries Inc's return on total capital indicates varying levels of effectiveness in generating profits relative to the total capital employed over the five-year period. An in-depth analysis of the factors influencing these fluctuations would provide valuable insights into the company's financial performance and strategic decisions.
Peer comparison
May 31, 2024