Worthington Industries Inc (WOR)
Financial leverage ratio
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,695,150 | 1,638,640 | 3,650,920 | 3,643,020 | 3,373,240 |
| Total stockholders’ equity | US$ in thousands | 937,187 | 888,879 | 1,696,010 | 1,480,750 | 1,398,190 |
| Financial leverage ratio | 1.81 | 1.84 | 2.15 | 2.46 | 2.41 |
May 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,695,150K ÷ $937,187K
= 1.81
The financial leverage ratio of Worthington Industries Inc, as reflected in the provided data, demonstrates a trend of gradual decline over the four-year period from May 31, 2021, to May 31, 2025. Specifically, the ratio was 2.41 in 2021, increased slightly to 2.46 in 2022, before decreasing consistently to reach 2.15 in 2023, and further declining to 1.84 in 2024, and ultimately 1.81 in 2025.
This downward trajectory in the financial leverage ratio suggests a reduction in the company's reliance on debt relative to equity. The decline indicates a shift toward a less leveraged capital structure, which could imply increased financial stability and reduced financial risk.
The initial marginal increase from 2021 to 2022 might reflect temporary or strategic financial adjustments; however, the subsequent steady decrease suggests an effort to deleverage, possibly through debt repayment or equity funding. The continued reduction through 2023 to 2025 signals a consistent approach to lowering leverage levels.
Overall, the decreasing financial leverage ratio indicates a positive trend of decreasing financial risk for Worthington Industries Inc, aligning with prudent financial management practices aimed at strengthening the company's balance sheet and resilience against market fluctuations.
Peer comparison
May 31, 2025