Worthington Industries Inc (WOR)

Solvency ratios

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 Aug 31, 2019
Debt-to-assets ratio 0.18 0.17 0.08 0.09 0.19 0.20 0.20 0.20 0.19 0.19 0.20 0.20 0.21 0.23 0.23 0.23 0.30 0.29 0.29 0.29
Debt-to-capital ratio 0.25 0.25 0.14 0.14 0.29 0.30 0.31 0.31 0.32 0.33 0.32 0.33 0.34 0.35 0.36 0.34 0.46 0.46 0.46 0.47
Debt-to-equity ratio 0.33 0.33 0.17 0.17 0.41 0.43 0.46 0.46 0.47 0.48 0.47 0.49 0.51 0.54 0.55 0.51 0.85 0.85 0.84 0.89
Financial leverage ratio 1.83 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

The solvency ratios of Worthington Industries Inc indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has shown some fluctuation over the past few periods, ranging from 0.08 to 0.30. The ratio indicates that, on average, around 10 to 30% of the company's assets are financed by debt.

The debt-to-capital ratio has also varied, with values between 0.14 and 0.46. This ratio illustrates the proportion of the company's capital that is financed by debt, showing that approximately 14% to 46% of the capital structure is composed of debt.

The debt-to-equity ratio has displayed similar fluctuations, ranging from 0.17 to 0.89. This ratio indicates the extent to which the company's operations are funded by debt relative to equity, demonstrating that debt has accounted for around 17% to 89% of the company's equity.

The financial leverage ratio has shown inconsistency, varying between 1.83 and 3.02. This ratio measures the company's financial risk and indicates how much debt is used to finance the company's assets. The fluctuations in this ratio suggest changes in the company's capital structure and financial risk profile over the periods analyzed.

Overall, Worthington Industries Inc's solvency ratios reflect the company's reliance on debt financing to support its operations and investment activities. The fluctuations in these ratios highlight changes in the company's capital structure and financial risk position over time, which could have implications for the company's ability to generate returns for its investors and maintain financial stability.

Coverage ratios

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 Aug 31, 2019
Interest coverage 61.79 48.30 33.57 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 4.23

The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. It is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense. A higher interest coverage ratio indicates a company is more capable of servicing its debt obligations.

Analyzing Worthington Industries Inc's interest coverage over the past several quarters, we observe fluctuations in the ratio. The interest coverage ratio has generally been healthy, ranging from a low of 4.23 to a high of 61.79.

In recent periods, the interest coverage ratio has shown an increasing trend, with the ratio exceeding 20 in the most recent period. This indicates that Worthington Industries Inc has been generating sufficient operating income to comfortably meet its interest expenses.

It is essential for investors and stakeholders to monitor Worthington Industries Inc's interest coverage ratio over time to ensure the company can sustain its debt obligations and continue operating profitably.