Worthington Industries Inc (WOR)
Debt-to-equity ratio
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 689,718 | 696,345 | 710,031 | 699,516 | 598,356 |
| Total stockholders’ equity | US$ in thousands | 1,696,010 | 1,480,750 | 1,398,190 | 820,821 | 831,246 |
| Debt-to-equity ratio | 0.41 | 0.47 | 0.51 | 0.85 | 0.72 |
May 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $689,718K ÷ $1,696,010K
= 0.41
The debt-to-equity ratio of Worthington Enterprises Inc. has exhibited a declining trend over the past five years, reflecting a decreasing reliance on debt financing relative to equity. In May 2023, the ratio stood at 0.41, indicating that the company had $0.41 in debt for every dollar of equity. This represents an improvement from the previous year's ratio of 0.50. The declining trend suggests that the company has been effectively reducing its debt levels or increasing its equity base, which can enhance financial stability and reduce bankruptcy risk. Worthington Enterprises Inc. appears to be managing its capital structure prudently, striking a balance between debt and equity to fund its operations and growth initiatives. This trend may signal a strengthening financial position and possibly improve the company's creditworthiness.
Peer comparison
May 31, 2023