Worthington Industries Inc (WOR)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.24 | 0.25 | 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 |
November 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $295,721K ÷ ($295,721K + $911,321K)
= 0.24
The debt-to-capital ratio of Worthington Industries Inc has shown a declining trend over the data period, starting at 0.46 in November 2019 and decreasing to 0.24 by November 2024. This indicates that the company's reliance on debt as a source of financing relative to its total capital has been decreasing over time. The decrease in the ratio suggests that Worthington Industries Inc has been reducing its debt levels in proportion to its overall capital structure, which may indicate improved financial stability and lower financial risk for the company. While there was a slight increase in the ratio from May 2023 to February 2024, it resumed its declining trend thereafter. The significant drop in the ratio from August 2023 to November 2023, followed by a sudden spike in February 2024, might be worth further investigation to understand the reasons behind these fluctuations. Overall, the decreasing debt-to-capital ratio reflects a positive trend of decreasing leverage and improving financial health for Worthington Industries Inc.
Peer comparison
Nov 30, 2024