Worthington Industries Inc (WOR)
Financial leverage ratio
| May 31, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,695,150 | 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 |
| Total stockholders’ equity | US$ in thousands | 938,237 | 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 |
| Financial leverage ratio | 1.81 | 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 |
May 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,695,150K ÷ $938,237K
= 1.81
The financial leverage ratio of Worthington Industries Inc has exhibited notable fluctuations over the analyzed period from August 31, 2020, to May 31, 2025. Initially, the ratio increased from approximately 2.26 in August 2020 to a peak of 2.58 in February 2022. This upward trend indicates a period during which the company's reliance on debt relative to equity was intensifying, potentially reflecting leveraged growth initiatives or increased capital structure risk.
Following this peak, the ratio demonstrated a gradual decline, reaching approximately 1.79 by February 2025. This decrement suggests a strategic shift towards less financial leverage, possibly through deleveraging efforts, improved equity base, or refinancing activities that reduced debt exposure. The downward trend signifies a move towards a more conservative capital structure, aiming to mitigate financial risk.
Throughout the observed timeframe, the ratio's oscillations reflect responses to broader economic conditions, operational strategies, and changes in debt management policies. Overall, the recent decline in the financial leverage ratio indicates a trend toward reduced leverage, which may enhance the company's financial stability but could also imply slower leveraging for growth opportunities. The current ratio near 1.80 indicates a balanced capital structure with moderate leverage, aligning with prudent financial management practices.
Peer comparison
May 31, 2025