Worthington Steel Inc (WS)
Working capital 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 |
| Total current assets | US$ in thousands | 1,001,800 | 980,886 | 1,267,100 | 940,120 |
| Total current liabilities | US$ in thousands | 618,400 | 478,390 | 657,949 | 506,103 |
| Working capital turnover | 8.95 | 7.19 | 6.68 | 4.90 |
May 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,430,600K ÷ ($1,001,800K – $618,400K)
= 8.95
Worthington Steel Inc's working capital turnover has shown a consistent increasing trend over the past four years. The working capital turnover ratio has increased from 4.90 in August 2021 to 8.95 in May 2024. This indicates that the company is managing its working capital more efficiently, generating more revenue relative to its working capital investment.
A higher working capital turnover ratio signifies that the company is effectively utilizing its current assets to generate sales revenue. Worthington Steel Inc's improving working capital turnover ratio suggests that the company has been able to operate more efficiently and generate higher sales relative to its working capital investment over the years.
The increasing trend in working capital turnover is a positive sign as it indicates that Worthington Steel Inc is managing its working capital effectively and efficiently. This may lead to improved profitability and financial performance for the company in the future.
Peer comparison
May 31, 2024