Worthington Steel Inc (WS)

Payables turnover

May 31, 2025 Feb 28, 2025 Nov 30, 2024 Aug 31, 2024 May 31, 2024 Feb 29, 2024 Nov 30, 2023 Aug 31, 2023 May 31, 2023 Feb 28, 2023
Cost of revenue (ttm) US$ in thousands 2,704,700 2,780,700 2,858,200 2,947,000 2,990,674 2,942,556 2,959,456 3,037,056 3,245,815 3,498,066
Payables US$ in thousands 402,500 326,900 285,500 359,300 380,400 407,300 349,900 405,160 392,500 402,177
Payables turnover 6.72 8.51 10.01 8.20 7.86 7.22 8.46 7.50 8.27 8.70

May 31, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,704,700K ÷ $402,500K
= 6.72

The payables turnover ratio for Worthington Steel Inc. demonstrates notable fluctuations over the observed period. Starting at 8.70 as of February 28, 2023, the ratio exhibits a gradual decline through subsequent periods, reaching a low of 7.22 on February 29, 2024. This decrease suggests a lengthening of the average payment period to suppliers, potentially indicating strategic delays in settling payables or changes in procurement practices.

Following this trough, there is a discernible recovery, with the ratio increasing to 8.46 by November 30, 2023, and reaching 8.51 by February 28, 2025. Notably, a significant spike occurs in the November 30, 2024, data point, where the ratio surges to 10.01, implying a more rapid turnover of payables or possibly a change in payment policies that favor quicker settling of obligations. Conversely, the lowest recorded ratio during the period, 6.72 on May 31, 2025, indicates an extension of payable periods, possibly reflecting cash flow management strategies or supplier negotiation outcomes.

Overall, the trend depicts episodic variability in the company's ability or willingness to accelerate payments to suppliers. Periods of higher turnover ratios suggest improved efficiency in managing payables, whereas lower ratios could point to deliberate payment extensions or liquidity considerations. The oscillation in these ratios warrants further analysis to understand underlying operational or strategic shifts affecting working capital management.


Peer comparison

May 31, 2025