Worthington Steel Inc (WS)
Working capital 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 current assets | US$ in thousands | 1,048,500 | 1,001,800 | 980,886 | 980,886 | 1,267,100 |
| Total current liabilities | US$ in thousands | 631,500 | 618,400 | 478,390 | 478,390 | 657,949 |
| Working capital turnover | 7.42 | 8.95 | 7.19 | 7.19 | 6.68 |
May 31, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,093,300K ÷ ($1,048,500K – $631,500K)
= 7.42
The working capital turnover ratio for Worthington Steel Inc. demonstrates a trend of overall improvement over the specified periods. As of August 31, 2022, the ratio was 6.68, indicating the company's efficiency in utilizing its working capital to generate sales. By May 31, 2023, the ratio increased slightly to 7.19, signaling a modest enhancement in operational efficiency. This stable level was maintained through August 31, 2023, with the ratio remaining at 7.19, suggesting consistent management of working capital relative to sales during that period.
A significant increase is observed by May 31, 2024, when the ratio rose sharply to 8.95. This substantial uptick indicates a notable improvement in the company's ability to generate sales relative to its working capital, reflecting either more efficient working capital management, increased sales volume, or a combination of both. However, the ratio declines somewhat to 7.42 as of May 31, 2025, representing a slight reduction from the peak achieved in the previous period but still remaining above the levels seen in pre-2024 measurements.
In summary, the data depicts a trend of increasing working capital efficiency over the analyzed periods, punctuated by a peak in mid-2024 followed by a modest decrease. This evolving pattern suggests that while the company has made significant strides in optimizing working capital utilization to support sales, recent fluctuations imply potential adjustments in operational management or sales dynamics.
Peer comparison
May 31, 2025