Worthington Industries Inc (WOR)
Return on total capital
| Nov 30, 2024 | Aug 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 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 144,107 | 233,680 | 377,087 | 400,981 | 395,273 | 359,485 | 297,936 | 316,686 | 437,564 | 525,745 | 561,017 | 557,504 | 322,724 | 930,408 | 811,224 | 759,073 | 920,278 | 136,754 | 163,695 | 180,723 |
| Long-term debt | US$ in thousands | 295,721 | 300,009 | 297,695 | 298,549 | 298,083 | 689,718 | 689,339 | 693,453 | 690,011 | 696,345 | 700,739 | 701,892 | 706,130 | 710,031 | 708,511 | 707,340 | 707,331 | 699,516 | 698,552 | 698,531 |
| Total stockholders’ equity | US$ in thousands | 911,321 | 901,353 | 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 | 821,495 | 835,891 |
| Return on total capital | 11.94% | 19.45% | 31.17% | 19.17% | 19.07% | 15.07% | 13.10% | 14.35% | 19.87% | 24.15% | 26.07% | 25.55% | 14.94% | 44.13% | 40.15% | 38.26% | 44.03% | 8.99% | 10.77% | 11.78% |
November 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $144,107K ÷ ($295,721K + $911,321K)
= 11.94%
The return on total capital for Worthington Industries Inc fluctuated over the period analyzed. It decreased from 11.78% in November 2019 to 8.99% in May 2020, reflecting a decrease in the company's ability to generate returns on the total capital employed. However, the ratio showed significant improvement in the subsequent months, reaching a peak of 44.13% in May 2021. The company's performance dipped in the following periods but remained relatively stable, hovering between 13.10% and 24.15% until August 2023.
There was a noteworthy increase in the return on total capital in February 2024, reaching 31.17%, indicating a strong performance in utilizing the total capital. However, the ratio declined to 11.94% by November 2024. It is essential for Worthington Industries Inc to carefully monitor and manage its capital allocation to ensure sustainable returns for its investors and stakeholders.
Peer comparison
Nov 30, 2024