Worthington Industries Inc (WOR)
Debt-to-capital ratio
| 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 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 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 | 698,612 | 598,356 |
| Total stockholders’ equity | US$ in thousands | 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 | 787,973 | 831,246 |
| Debt-to-capital ratio | 0.25 | 0.14 | 0.14 | 0.29 | 0.30 | 0.31 | 0.31 | 0.32 | 0.33 | 0.32 | 0.33 | 0.34 | 0.35 | 0.36 | 0.34 | 0.46 | 0.46 | 0.46 | 0.47 | 0.42 |
February 29, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $297,695K ÷ ($297,695K + $912,096K)
= 0.25
The debt-to-capital ratio of Worthington Industries Inc has shown fluctuation over the past several quarters, ranging from 0.14 to 0.47. The ratio indicates the proportion of the company's capital structure that is financed by debt.
In the most recent quarter ending on February 29, 2024, the ratio stands at 0.25, signifying that 25% of the company's capital is funded through debt. Comparing this to the previous quarter's ratio of 0.14, we observe an increase in the reliance on debt for capital. However, this ratio is still relatively moderate, indicating a balanced mix of debt and equity financing.
Looking at historical trends, we can see some variability in the debt-to-capital ratio over time. The ratio peaked at 0.47 in February 2019 and has generally trended downward since then, reaching a low of 0.14 in November 2023.
It is essential for investors and stakeholders to closely monitor changes in the debt-to-capital ratio as it can provide insights into the company's financial leverage and risk profile. Fluctuations in this ratio may signal shifts in the company's capital structure strategy and its ability to meet debt obligations.
Peer comparison
Feb 29, 2024