Worthington Industries Inc (WOR)

Solvency ratios

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 May 31, 2019
Debt-to-assets ratio 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 0.24
Debt-to-capital ratio 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 0.42
Debt-to-equity ratio 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 0.72
Financial leverage ratio 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 3.02

Worthington Industries Inc's solvency ratios show the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has been relatively stable over the periods, ranging between 0.08 to 0.30, indicating that the company's total debt represents between 8% to 30% of its total assets.

The debt-to-capital ratio and debt-to-equity ratio show a similar trend, with fluctuations over the periods. The debt-to-capital ratio ranges from 0.14 to 0.46, while the debt-to-equity ratio ranges from 0.17 to 0.89. These ratios suggest the proportion of debt compared to total capital and equity, with higher ratios indicating higher leverage and financial risk.

The financial leverage ratio, which measures the company's total assets relative to equity, has also shown variability over time, ranging from 1.87 to 3.02. A higher financial leverage ratio indicates higher financial risk and reliance on debt financing.

Overall, the solvency ratios of Worthington Industries Inc reflect fluctuations in the company's leverage and debt levels over the analyzed periods. Investors and stakeholders should monitor these ratios to assess the company's ability to manage its debt and maintain financial stability.

Coverage ratios

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 May 31, 2019
Interest coverage 38.42 28.74 20.38 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 6.17

Interest coverage is a key financial ratio that indicates a company's ability to pay its interest expenses from its operating income. It is calculated by dividing earnings before interest and taxes (EBIT) by the total interest expenses incurred during a specific period.

Analyzing Worthington Industries Inc's interest coverage over the past few quarters shows a fluctuating trend. The interest coverage ratio has ranged from 4.23 to 38.42, indicating significant variations in the company's ability to cover its interest expenses.

A higher interest coverage ratio, such as 38.42 observed in the most recent quarter, suggests that Worthington Industries Inc is generating sufficient operating income to comfortably cover its interest obligations. This is a positive sign for creditors and investors, as it indicates a lower risk of default.

Conversely, the lower ratios, such as 4.23 and 4.86 seen in some quarters, may raise concerns about the company's ability to service its debt obligations. A low interest coverage ratio could indicate financial distress and an increased risk of default.

Overall, while Worthington Industries Inc's interest coverage has shown variability, the recent higher ratios indicate a stronger ability to meet its interest payments. However, ongoing monitoring of this ratio is essential to assess the company's financial health and debt servicing capacity.