Worthington Industries Inc (WOR)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -7,013 | 50,696 | 5,248 | 114,450 | 330,638 | 398,663 | 442,181 | 394,200 | 321,540 | 333,579 | 447,086 | 531,603 | 586,912 | 611,807 | 393,090 | 1,017,899 | 885,930 | 840,074 | 989,122 | 239,174 |
| Interest expense (ttm) | US$ in thousands | 5,203 | 1,581 | 2,717 | 5,311 | 9,816 | 15,801 | 21,244 | 26,759 | 30,412 | 32,517 | 32,217 | 31,337 | 30,820 | 30,238 | 30,474 | 30,346 | 30,155 | 29,959 | 29,726 | 31,616 |
| Interest coverage | -1.35 | 32.07 | 1.93 | 21.55 | 33.68 | 25.23 | 20.81 | 14.73 | 10.57 | 10.26 | 13.88 | 16.96 | 19.04 | 20.23 | 12.90 | 33.54 | 29.38 | 28.04 | 33.27 | 7.56 |
February 28, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-7,013K ÷ $5,203K
= -1.35
The interest coverage ratio for Worthington Industries Inc has fluctuated over the reported periods. From May 31, 2020, where the interest coverage was 7.56, it increased significantly to 33.27 by August 31, 2020, signaling improved ability to meet interest obligations. This strong coverage continued through the next few periods, with the ratio remaining above 20 until May 31, 2021.
However, the interest coverage ratio decreased notably to 12.90 by August 31, 2021, indicating some strain in meeting interest payments. The ratio improved slightly in the following quarters but remained below the previously reported levels.
Despite fluctuations, the interest coverage ratio for Worthington Industries Inc generally remained above 10, indicating a reasonable ability to cover interest expenses with operating income. The sharp decline observed on August 31, 2024, where the interest coverage fell to 1.93, may raise concerns about the company's ability to meet interest obligations during that specific period. Furthermore, the negative interest coverage reported on February 28, 2025, raises a significant red flag, suggesting that the operating income may not have been sufficient to cover interest expenses during that period.
Overall, the trend in Worthington Industries Inc's interest coverage ratio indicates fluctuations in the company's ability to cover interest expenses with operating income over the reported periods. It is essential for stakeholders to monitor this ratio closely to assess the company's financial health and ability to meet debt obligations.
Peer comparison
Feb 28, 2025