Worthington Industries Inc (WOR)
Return on total capital
| May 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 122,732 | 95,977 | 50,696 | 5,248 | -30,997 | 14,008 | 47,358 | -654 | 70,186 | 115,017 | 113,872 | 257,651 | 315,248 | 378,390 | 415,410 | 246,070 | 153,709 | 49,560 | 6,974 | 167,946 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 938,237 | 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 |
| Return on total capital | 13.08% | 10.23% | 5.55% | 0.58% | -3.49% | 1.54% | 2.64% | -0.04% | 4.14% | 7.25% | 7.52% | 17.03% | 21.29% | 26.07% | 28.07% | 16.93% | 10.99% | 3.78% | 0.55% | 12.15% |
May 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $122,732K ÷ ($—K + $938,237K)
= 13.08%
The analysis of Worthington Industries Inc.'s return on total capital reveals notable fluctuations over the specified periods, reflecting the company's evolving financial performance and strategic conditions.
Initially, at the end of August 2020, the return on total capital measured 12.15%. This figure declined sharply to a minuscule 0.55% by November 30, 2020, suggestive of diminished profitability or increased capital costs during that period. The subsequent quarter saw a modest recovery to 3.78% by February 28, 2021, indicating some operational improvement.
The upward trend resumed markedly by May 31, 2021, reaching nearly 11%, followed by a significant surge to 16.93% on August 31, 2021, and an exceptional peak of 28.07% by November 30, 2021. This period signifies a strong operational or strategic period leading to robust returns on invested capital. The momentum persisted into February 28, 2022, with a high of 26.07%, and remained relatively elevated at 21.29% on May 31, 2022, before a decline to 17.03% in August 2022.
From late 2022, the metric demonstrates a marked downward trend, falling to 7.52% by November 30, 2022, and maintaining a similar level of 7.25% through February 2023. It further declined to 4.14% by May 2023, turning slightly negative at -0.04% in August 2023, indicative of a potential period of operational difficulties or increased costs eroding returns.
The subsequent figures show some recovery, with the return rising to 2.64% by November 2023 prior to decreasing again to 1.54% in February 2024. The negative territory is revisited with a -3.49% return on May 31, 2024, and a marginal positive increase to 0.58% by August 31, 2024. The trend continues upward thereafter, with a notable improvement to 5.55% in November 2024, and further recovery reaching 10.23% by February 2025, followed by an increase to 13.08% in May 2025.
Overall, the company's return on total capital has demonstrated significant volatility over the analyzed period. The early-to-mid 2021 phase was characterized by exceptional profitability levels, whereas recent periods indicate challenges in sustaining high returns, with occasional positive movements suggesting periods of strategic adjustment or market recovery. The negative figures and periods of low or declining returns may reflect operational headwinds, market volatility, or economic conditions affecting the company's ability to generate consistent returns on its invested capital.
Peer comparison
May 31, 2025