Worthington Industries Inc (WOR)
Interest coverage
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 359,485 | 525,745 | 930,408 | 136,754 | 234,701 |
| Interest expense | US$ in thousands | 26,759 | 31,337 | 30,346 | 31,616 | 38,063 |
| Interest coverage | 13.43 | 16.78 | 30.66 | 4.33 | 6.17 |
May 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $359,485K ÷ $26,759K
= 13.43
The interest coverage ratio of Worthington Enterprises Inc. has exhibited a positive trend over the past five years. The ratio has increased from 6.27 in 2019 to 14.78 in 2023, indicating a significant improvement in the company's ability to cover its interest expenses from its operating income. This suggests that the company's capacity to meet its interest obligations has strengthened over the years, reflecting positively on its financial stability. The consistent increase in the interest coverage ratio demonstrates an improving financial position and reduced financial risk for Worthington Enterprises Inc.
Peer comparison
May 31, 2023