Worthington Industries Inc (WOR)
Financial leverage ratio
| 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 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,645,270 | 1,704,690 | 3,584,140 | 3,476,690 | 3,650,920 | 3,497,670 | 3,390,660 | 3,510,140 | 3,643,020 | 3,738,160 | 3,517,630 | 3,547,760 | 3,373,240 | 3,137,870 | 3,027,380 | 3,131,050 | 2,331,520 | 2,429,080 | 2,408,960 | 2,382,630 |
| Total stockholders’ equity | US$ in thousands | 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 | 787,973 |
| Financial leverage ratio | 1.83 | 1.87 | 2.00 | 1.96 | 2.15 | 2.21 | 2.24 | 2.32 | 2.46 | 2.58 | 2.38 | 2.44 | 2.41 | 2.39 | 2.37 | 2.26 | 2.84 | 2.96 | 2.88 | 3.02 |
August 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,645,270K ÷ $901,353K
= 1.83
The financial leverage ratio of Worthington Industries Inc has displayed some fluctuations over the recent periods, ranging from a low of 1.83 to a high of 3.02. This ratio indicates the extent to which the company relies on debt to finance its operations and growth.
The trend in the financial leverage ratio shows an increasing pattern over the past few years, indicating that the company has been taking on more debt relative to its equity. A ratio above 1 indicates that the company has more debt than equity in its capital structure.
The ratio reached its peak at 3.02 in November 2019, suggesting a relatively higher level of financial leverage during that period. Subsequently, there has been some fluctuation in the ratio, but it has generally remained at elevated levels above 2.
Generally, a higher financial leverage ratio may indicate increased financial risk due to higher interest expenses and potential challenges in meeting debt obligations. It is important for investors and stakeholders to monitor the trend in this ratio to assess the company's ability to manage its debt levels effectively and sustain its financial health.
Peer comparison
Aug 31, 2024