Worthington Steel Inc (WS)
Total asset turnover
| May 31, 2025 | May 31, 2024 | Aug 31, 2023 | May 31, 2023 | Aug 31, 2022 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,093,300 | 3,430,600 | 3,611,590 | 3,611,590 | 4,068,930 |
| Total assets | US$ in thousands | 1,961,800 | 1,866,400 | 1,764,360 | 1,764,360 | 2,084,030 |
| Total asset turnover | 1.58 | 1.84 | 2.05 | 2.05 | 1.95 |
May 31, 2025 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,093,300K ÷ $1,961,800K
= 1.58
The total asset turnover ratio of Worthington Steel Inc. demonstrates notable fluctuations over the specified periods from August 31, 2022, to May 31, 2025. On August 31, 2022, the ratio stood at 1.95, indicating a relatively efficient utilization of assets to generate sales. This ratio increased slightly to 2.05 by May 31, 2023, and maintained that level through August 31, 2023, suggesting a period of stable and efficient asset utilization.
However, a downward trend is evident from May 31, 2024, onwards, with the ratio decreasing to 1.84 and further declining to 1.58 by May 31, 2025. This decline signals a reduction in the efficiency with which the company's assets are being used to generate sales. The decreasing trend over these two periods suggests that the company may be experiencing challenges in converting its asset base into revenue or possibly has experienced growth in assets that have not been matched proportionally by sales growth.
Overall, while the company's asset turnover was relatively high and stable in the earlier periods, the subsequent decrease indicates potential concerns regarding asset efficiency and sales performance relative to asset investments. This trend warrants further analysis to determine underlying factors such as changes in operational efficiency, asset base composition, or market conditions influencing sales capacity.
Peer comparison
May 31, 2025