Worthington Industries Inc (WOR)
Financial leverage ratio
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,682,000 | 1,657,020 | 1,645,270 | 1,679,480 | 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 |
| Total stockholders’ equity | US$ in thousands | 938,521 | 912,958 | 901,353 | 888,879 | 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 |
| Financial leverage ratio | 1.79 | 1.82 | 1.83 | 1.89 | 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 |
February 28, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,682,000K ÷ $938,521K
= 1.79
The financial leverage ratio of Worthington Industries Inc has shown fluctuations over the period from May 31, 2020, to February 28, 2025. The ratio started at 2.84 on May 31, 2020, indicating that the company had $2.84 of debt for every dollar of equity.
Throughout the period under review, the financial leverage ratio fluctuated, reaching its highest point of 2.58 on February 28, 2022, before gradually decreasing to 1.79 by February 28, 2025. These fluctuations suggest changes in the company's capital structure and its ability to meet financial obligations through a combination of debt and equity.
The decreasing trend in the financial leverage ratio from 2022 to 2025 indicates a potential decrease in the company's reliance on debt financing compared to equity financing. This shift may be due to various factors such as improved profitability, increased equity injections, or a strategic decision to reduce debt levels.
Overall, the trend in Worthington Industries Inc's financial leverage ratio suggests a changing mix of debt and equity in its capital structure, reflecting the company's evolving financial position and risk profile. It is essential for stakeholders to monitor this ratio to assess the company's leverage and financial risk over time.
Peer comparison
Feb 28, 2025