Worthington Industries Inc (WOR)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 1.79 | 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 | 2.84 |
Worthington Industries Inc has consistently maintained a strong solvency position based on its solvency ratios. The debt-to-assets ratio, which indicates the proportion of a company's assets financed by debt, has been at 0.00 over the entire period analyzed. This suggests that the company has not relied heavily on debt to finance its operations and investments.
Similarly, the debt-to-capital ratio, which shows the percentage of a company's capital that is financed by debt, has also been consistently at 0.00. This indicates that Worthington Industries has been able to fund its capital structure without relying on significant debt financing.
The debt-to-equity ratio, which measures the proportion of a company's equity that is financed by debt, has also been consistently at 0.00. This indicates a balanced capital structure where the company has not heavily leveraged its equity with debt.
The financial leverage ratio, which compares a company's total assets to its equity, has shown a decreasing trend over the period analyzed, from 2.84 in May 2020 to 1.79 in February 2025. This downward trend indicates that Worthington Industries has been reducing its reliance on debt financing in comparison to its equity, which is a positive sign of improving financial health and lower financial risk.
Overall, based on these solvency ratios, Worthington Industries Inc appears to have a strong and stable financial position with low debt levels and a well-balanced capital structure. This indicates the company's ability to meet its financial obligations and withstand economic challenges successfully.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio of Worthington Industries Inc has shown fluctuations over the period from May 31, 2020, to February 28, 2025. The ratio indicates the company's ability to meet its interest obligations from its operating income.
The interest coverage ratio was relatively stable between May 31, 2020, and May 31, 2021, ranging from 7.56 to 33.54, showing a strong ability to cover interest payments. However, there was a significant decrease in the ratio on August 31, 2021, to 12.90, which may indicate a potential decline in the company's ability to cover interest expenses.
The ratio improved in the following periods, reaching a peak of 33.68 on February 29, 2024, signaling a strong recovery. However, there was a sharp decline in the ratio on August 31, 2024, dropping to 1.93, which could indicate increased financial strain or volatility in the company's earnings.
The negative interest coverage ratio of -1.35 on February 28, 2025, suggests that Worthington Industries Inc may have faced challenges in generating enough operating income to cover its interest expenses during that period. This could raise concerns about the company's financial health and its ability to service its debt obligations effectively.
Overall, monitoring the trend of the interest coverage ratio is crucial for understanding Worthington Industries Inc's financial stability, debt repayment capacity, and how effectively it is managing its interest obligations.