Worthington Steel Inc (WS)
Fixed asset turnover
| May 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | ||
|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,430,600 | 3,611,590 | 4,068,930 | 2,127,400 |
| Property, plant and equipment | US$ in thousands | 474,800 | 489,659 | 511,059 | 283,583 |
| Fixed asset turnover | 7.23 | 7.38 | 7.96 | 7.50 |
May 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,430,600K ÷ $474,800K
= 7.23
The fixed asset turnover ratio for Worthington Steel Inc has been relatively consistent over the past four years, ranging from 7.23 to 7.96. This indicates that the company generates approximately $7.23 to $7.96 in sales for every dollar invested in fixed assets.
A higher fixed asset turnover ratio typically suggests that the company is utilizing its fixed assets efficiently to generate revenue. This can be a positive sign of operational efficiency and effective asset management within the organization.
However, slight fluctuations in the ratio over the years could be due to changes in the company's operations, investment in new fixed assets, or other economic factors. Overall, the stable and relatively high fixed asset turnover ratios for Worthington Steel Inc indicate that the company is effectively leveraging its fixed assets to drive sales and generate revenue.
Peer comparison
May 31, 2024