Worthington Industries Inc (WOR)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The solvency ratios for Worthington Industries Inc. over the provided period exhibit a consistently strong financial position, characterized by a notably conservative leverage profile. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio are all recorded at zero across all specified dates, indicating that the company has maintained a debt-free capital structure throughout the observed timeframe. This implies that Worthington Industries has not relied on debt financing, thereby eliminating concerns regarding debt-related solvency risks.
In addition, the financial leverage ratio has been observed to fluctuate within a narrow band, ranging from 1.79 to 2.58. Despite some variance, the ratios generally suggest a low to moderate degree of financial leverage when compared to industry norms. The decreasing trend in the leverage ratio—from a high of 2.58 in February 2022 to approximately 1.79 by May 2025—further reinforces the company's conservative approach to leveraging its capital structure.
Overall, the data indicate that Worthington Industries Inc. maintains a highly solvent position with no apparent reliance on debt. The company's ability to operate without debt obligations confers a significant buffer against financial distress and enhances its capacity to sustain operations independently. The stable and low levels of leverage suggest prudent financial management, minimizing the risks associated with excessive indebtedness, and positioning the firm favorably in terms of long-term financial stability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 55.53 | 44.45 | 32.07 | 1.93 | -5.84 | 1.43 | 3.39 | -0.03 | 2.82 | 4.03 | 3.50 | 8.00 | 10.06 | 12.28 | 13.74 | 8.07 | 5.07 | 1.64 | 0.23 | 5.65 |
The interest coverage ratios for Worthington Industries Inc. over the specified periods reveal significant fluctuations indicative of variability in the company's ability to service its interest expenses. In the fiscal periods ending August 31, 2020, and May 31, 2021, the ratios were relatively healthy at 5.65 and 5.07, respectively, signaling that the company's earnings before interest and taxes (EBIT) comfortably covered interest obligations, reflecting stable operational performance during those times.
However, a notable decline is observed in the period ending November 30, 2020, when the ratio sharply dropped to 0.23, suggesting that earnings were insufficient to cover interest expenses, which might point to financial distress or extraordinary charges during that quarter. This situation improved considerably by February 28, 2021, with the ratio increasing to 1.64, indicating a modest recovery but still approaching a threshold where interest coverage could be considered marginal.
Subsequent periods demonstrate a strong recovery, with ratios peaking at 13.74 in November 2021 and remaining robust at 12.28 in February 2022, reflecting improved earnings and a stronger capacity to meet interest obligations. These high ratios suggest a comfortable buffer over interest expenses during this period.
From May 2022 through August 2022, the ratios remained healthy at 10.06 and 8.00, respectively, though a downward trend begins with the ratios decreasing to 3.50 by November 2022, implying some moderation in EBIT relative to interest obligations. The ratio continues to decline, reaching 4.03 in February 2023 and then 2.82 in May 2023, indicating a tightening of coverage and potentially increased financial leverage or reduced earnings.
A stark shift is observed starting August 2023, where the ratio falls to a negative value of -0.03, implying that the company's earnings before interest and taxes dipped below zero, thus failing to cover interest expenses at that time. This situation persists in subsequent periods: the ratio remains negative at -5.84 in May 2024 but then improves markedly to 1.93 in August 2024, suggesting some rebound. However, the ratio surges to an exceptionally high 32.07 in November 2024, and even further to 44.45 in February 2025, followed by an estimated 55.53 in May 2025, indicating a significant increase in EBIT or a reduction in interest expenses and potentially reflecting extraordinary earnings or adjustments.
Overall, the interest coverage trend for Worthington Industries Inc. demonstrates periods of both strength and vulnerability. While the company has historically maintained adequate coverage, recent periods exhibit volatility with temporary austerity measures, shifts to negative coverage, and then substantial improvements, likely driven by changes in earnings, interest obligations, or financial restructuring.