Worthington Industries Inc (WOR)
Interest coverage
| Nov 30, 2024 | Aug 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 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 144,107 | 233,680 | 377,087 | 400,981 | 395,273 | 359,485 | 297,936 | 316,686 | 437,564 | 525,745 | 561,017 | 557,504 | 322,724 | 930,408 | 811,224 | 759,073 | 920,278 | 136,754 | 163,695 | 180,723 |
| Interest expense (ttm) | US$ in thousands | 2,044 | 2,085 | 6,110 | 10,246 | 17,386 | 24,910 | 28,563 | 32,517 | 32,217 | 31,337 | 30,820 | 30,238 | 30,474 | 30,346 | 30,155 | 29,959 | 29,726 | 31,616 | 33,679 | 35,658 |
| Interest coverage | 70.50 | 112.08 | 61.72 | 39.14 | 22.74 | 14.43 | 10.43 | 9.74 | 13.58 | 16.78 | 18.20 | 18.44 | 10.59 | 30.66 | 26.90 | 25.34 | 30.96 | 4.33 | 4.86 | 5.07 |
November 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $144,107K ÷ $2,044K
= 70.50
Worthington Industries Inc's interest coverage ratio has shown significant fluctuations over the periods analyzed. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt, with higher ratios indicating better financial health.
Starting at a relatively stable range between 4.33 and 5.07 from May 2020 to February 2021, the interest coverage ratio saw a substantial increase to 30.96 in August 2021, suggesting a significant improvement in the company's ability to cover its interest expenses. However, this metric declined in subsequent periods, reaching a low of 9.74 in November 2022, before trending upwards again.
The interest coverage ratio peaked at 112.08 in August 2024, showcasing a strong ability to meet interest obligations. This was followed by a decrease to 70.50 in November 2024, which still indicates a robust capacity to cover interest expenses.
Overall, while Worthington Industries Inc's interest coverage ratio has displayed fluctuations, the company generally demonstrates a reasonable capacity to manage its interest payments, with some periods of significant improvement and stability.
Peer comparison
Nov 30, 2024