Worthington Industries Inc (WOR)
Financial leverage ratio
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,638,640 | 3,650,920 | 3,643,020 | 3,373,240 | 2,331,520 |
| Total stockholders’ equity | US$ in thousands | 888,879 | 1,696,010 | 1,480,750 | 1,398,190 | 820,821 |
| Financial leverage ratio | 1.84 | 2.15 | 2.46 | 2.41 | 2.84 |
May 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,638,640K ÷ $888,879K
= 1.84
The financial leverage ratio of Worthington Industries Inc has experienced fluctuations over the past five years. As of May 31, 2020, the ratio stood at 2.84, indicating a relatively high level of financial leverage. However, there was a decline in the ratio to 2.41 by May 31, 2021, suggesting a reduced reliance on debt to finance the company's operations.
Subsequently, the financial leverage ratio increased slightly to 2.46 by May 31, 2022, before decreasing to 2.15 by May 31, 2023. This indicates that the company may have made efforts to decrease its debt levels relative to its equity during this period.
By May 31, 2024, the financial leverage ratio further decreased to 1.84, signaling a significant reduction in the company's reliance on debt financing compared to previous years. Overall, the trend in the financial leverage ratio of Worthington Industries Inc reflects a mix of leveraging strategies over the years, with a noticeable decrease in leverage in the most recent year.
Peer comparison
May 31, 2024