Worthington Steel Inc (WS)
Inventory turnover
| May 31, 2025 | May 31, 2024 | Aug 31, 2023 | May 31, 2023 | Aug 31, 2022 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,704,700 | 2,990,800 | 3,271,180 | 3,271,180 | 3,673,470 |
| Inventory | US$ in thousands | 422,000 | 405,300 | 414,754 | 414,754 | 569,497 |
| Inventory turnover | 6.41 | 7.38 | 7.89 | 7.89 | 6.45 |
May 31, 2025 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,704,700K ÷ $422,000K
= 6.41
The inventory turnover ratios for Worthington Steel Inc. over the specified periods exhibit notable fluctuations. As of August 31, 2022, the inventory turnover was 6.45, indicating that the company sold and replaced its inventory approximately 6.45 times within that fiscal period. This ratio increased significantly by May 31, 2023, reaching 7.89, which suggests an improvement in inventory management efficiency and a faster cycle of inventory turnover. The ratio remained stable at 7.89 by August 31, 2023, implying sustained inventory management performance during this period.
However, a subsequent decline is observed in the May 31, 2024, figure, where the ratio decreased slightly to 7.38. While still relatively high, this indicates a marginal slowdown in inventory turnover compared to the previous period. The most recent data point, May 31, 2025, shows a further decrease to 6.41. This decline suggests a relaxation in inventory management efficiency, with inventory being held longer before sale or reordering cycles lengthening.
Overall, the trend demonstrates an initial improvement in inventory turnover between August 2022 and August 2023, followed by a gradual decline through 2024 and into 2025. Despite the recent decrease, the ratios remain relatively high compared to the initial figure in August 2022, indicating that the company generally maintains a relatively active inventory turnover cycle, although recent trends point to a possible slowdown that may warrant further investigation.
Peer comparison
May 31, 2025