Worthington Industries Inc (WOR)
Debt-to-equity 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-equity ratio | 0.32 | 0.33 | 0.33 | 0.17 | 0.17 | 0.41 | 0.43 | 0.46 | 0.46 | 0.47 | 0.48 | 0.47 | 0.49 | 0.51 | 0.54 | 0.55 | 0.51 | 0.85 | 0.85 | 0.84 |
November 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $295,721K ÷ $911,321K
= 0.32
The debt-to-equity ratio of Worthington Industries Inc has shown fluctuations over the past few years. Starting at 0.84 in November 2019, the ratio gradually decreased to 0.46 by August 2022, indicating a reduction in the company's reliance on debt financing relative to equity. However, there was a slight uptick in the ratio to 0.48 by February 2023 before dropping to 0.17 by August 2023.
The sharp decline in the debt-to-equity ratio to 0.17 by August 2023 suggests a significant decrease in the company's debt levels relative to equity, possibly indicating either reduced borrowing or increased equity investments. This low ratio implies a conservative capital structure with a lower proportion of debt in relation to equity, which could be seen as a positive indicator of financial stability and lower financial risk for Worthington Industries Inc.
Subsequently, the ratio experienced some fluctuations, reaching 0.33 by August 2024, before declining slightly to 0.32 by November 2024. Overall, Worthington Industries Inc's debt-to-equity ratio trend indicates a mix of prudent debt management and capital structure adjustments, which can impact the company's financial flexibility and risk profile.
Peer comparison
Nov 30, 2024