Worthington Industries Inc (WOR)
Financial leverage ratio
| 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 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 2,510,800 |
| Total stockholders’ equity | US$ in thousands | 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 | 831,246 |
| Financial leverage ratio | 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 | 3.02 |
February 29, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,704,690K ÷ $912,096K
= 1.87
The financial leverage ratio of Worthington Industries Inc has shown fluctuating trends over the past two years, ranging from 1.87 to 3.02. The ratio indicates the company's reliance on debt financing to support its operations and growth initiatives. Generally, a higher financial leverage ratio suggests a higher proportion of debt in the company's capital structure, which can amplify returns but also increase financial risk.
Worthington Industries' financial leverage ratio has peaked at 3.02 in the last two years, indicating a significant level of debt relative to equity. This may be a cause for concern as higher leverage can make the company more vulnerable to economic downturns or interest rate fluctuations.
It's worth noting that the company's financial leverage ratio has not shown a clear trend over the period analyzed, demonstrating some variability in its capital structure management. This could be due to strategic decisions made by the company to either increase or decrease its debt levels based on market conditions, growth opportunities, or financing needs. Investors and creditors should closely monitor the financial leverage ratio to assess Worthington Industries' debt management and financial risk profile.
Overall, the fluctuating financial leverage ratio of Worthington Industries Inc indicates a dynamic capital structure strategy that warrants careful monitoring to assess the company's financial health and risk profile.
Peer comparison
Feb 29, 2024