Worthington Industries Inc (WOR)

Solvency ratios

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
Debt-to-assets ratio 0.18 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
Debt-to-capital ratio 0.24 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
Debt-to-equity ratio 0.32 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
Financial leverage ratio 1.82 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

Worthington Industries Inc has shown consistency in maintaining a low Debt-to-assets ratio over the years, indicating sound solvency as they finance their assets mostly through equity and retained earnings rather than debt. The Debt-to-capital ratio has also decreased steadily, reflecting a decreasing reliance on debt to fund the company's operations.

The Debt-to-equity ratio has consistently declined, indicating a healthier balance between debt and equity financing. This ratio shows the proportion of debt used to finance the company's assets compared to shareholders' equity. Worthington Industries Inc has been progressively reducing their debt relative to equity, which is a positive sign for investors and creditors.

The Financial leverage ratio shows a declining trend, further supporting the notion that the company’s reliance on debt is decreasing over time. This metric measures the extent to which a company uses debt to finance its operations. Worthington Industries Inc seems to be improving its financial health by reducing leverage and becoming less reliant on debt to sustain its growth and operations.

Overall, the solvency ratios of Worthington Industries Inc suggest a conservative approach to managing their financial obligations, with a focus on maintaining a healthy balance between debt and equity and reducing their financial leverage over time.

Coverage ratios

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
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

The interest coverage ratio of Worthington Industries Inc has fluctuated over the past several quarters. It stood at 5.07 on November 30, 2019, indicating that the company generated 5.07 times more operating income than it needed to cover its interest expenses.

The ratio decreased to 4.86 on February 29, 2020, and further declined to 4.33 by May 31, 2020, suggesting a potential weakening of the company's ability to meet its interest obligations from its operating earnings.

A significant improvement was seen on August 31, 2020, with the interest coverage ratio surging to 30.96, indicating a substantial boost in the company's ability to cover its interest payments. This improvement was sustained in the subsequent quarters, with the ratio reaching 61.72 on February 29, 2024.

However, there was a notable decline in the interest coverage ratio by November 30, 2024, dropping to 70.50 from the previous quarter's high. This suggests that Worthington Industries may have experienced a decrease in its ability to cover interest expenses with operating income during that period.

Overall, while there have been fluctuations in Worthington Industries Inc's interest coverage ratio over the analyzed period, the company generally maintained a healthy ability to meet its interest obligations with its operating income. Investors and stakeholders should monitor future trends in the interest coverage ratio to assess the company's financial health and risk management.