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

Company name
Symbol
Return on total capital
Worthington Industries Inc
WOR
11.94%
Gibraltar Industries Inc
ROCK
16.47%
Insteel Industries Inc
IIIN
7.23%
Worthington Steel Inc
WS
21.71%