Worthington Industries Inc (WOR)
Return on total capital
| 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 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -7,013 | 50,696 | 5,248 | 114,450 | 330,638 | 398,663 | 442,181 | 394,200 | 321,540 | 333,579 | 447,086 | 531,603 | 586,912 | 611,807 | 393,090 | 1,017,899 | 885,930 | 840,074 | 989,122 | 239,174 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | 820,821 |
| Return on total capital | -0.75% | 5.55% | 0.58% | 12.88% | 36.25% | 22.24% | 24.92% | 23.24% | 20.28% | 22.04% | 29.56% | 35.90% | 40.44% | 41.34% | 27.05% | 72.80% | 67.54% | 65.79% | 71.53% | 29.14% |
February 28, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-7,013K ÷ ($—K + $938,521K)
= -0.75%
Worthington Industries Inc's return on total capital has shown fluctuating trends over the period from May 31, 2020, to February 28, 2025. The return on total capital started at a strong level of 29.14% in May 2020 and experienced significant growth to reach a peak of 72.80% in May 2021.
However, the return on total capital then declined steadily to 22.04% by November 2022, showing a decreasing trend over several periods. There was a slight increase in the return on total capital to 36.25% by February 2024, but it dropped sharply to 0.58% by August 2024, indicating a sudden deterioration in the company's capital efficiency.
The return on total capital further decreased to negative territory, reaching -0.75% by February 2025. This negative return implies that the company's capital investments are not generating an adequate return to cover the cost of capital.
In summary, Worthington Industries Inc's return on total capital has exhibited both growth and decline over the period under review, with periods of strong performance followed by significant declines. The company may need to assess its capital allocation strategies and operational efficiency to improve its return on total capital in the future.
Peer comparison
Feb 28, 2025