Worthington Steel Inc (WS)
Fixed asset turnover
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,431,528 | 3,301,228 | 3,363,828 | 3,630,468 | |||
| Property, plant and equipment | US$ in thousands | 474,800 | 447,400 | 433,400 | 490,319 | — | — | — |
| Fixed asset turnover | 7.23 | 7.38 | 7.76 | 7.40 |
May 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,431,528K ÷ $474,800K
= 7.23
Fixed asset turnover measures a company's ability to generate revenue from its investment in fixed assets such as property, plant, and equipment. Worthington Steel Inc's fixed asset turnover has been relatively stable over the past few quarters, ranging from 7.23 to 7.76.
The consistent high fixed asset turnover indicates that Worthington Steel is efficiently utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio implies that the company is generating more sales for each dollar invested in fixed assets.
The trend of the fixed asset turnover ratio remaining consistently above 7 suggests that Worthington Steel has a robust operational efficiency in utilizing its fixed assets to drive revenue. This efficiency indicates effective management of its production facilities and other fixed assets to support revenue generation.
Overall, Worthington Steel Inc's consistent high fixed asset turnover ratio reflects efficient utilization of its fixed assets and indicates the company's effective operational management in generating sales from its investment in fixed assets.
Peer comparison
May 31, 2024