Worthington Steel Inc (WS)

Working capital 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
Revenue (ttm) US$ in thousands 3,093,300 3,171,400 3,289,800 3,358,800 3,431,528 3,408,415 3,383,315 3,443,715 3,611,627 3,798,380
Total current assets US$ in thousands 912,600 857,400 955,500 1,001,800 1,022,900 1,086,500 1,058,390 980,886 980,886
Total current liabilities US$ in thousands 631,500 521,000 467,700 557,900 618,400 645,400 595,300 612,492 478,390 478,390
Working capital turnover 8.10 8.44 8.45 8.95 9.03 6.89 7.72 7.19 7.56

May 31, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,093,300K ÷ ($—K – $631,500K)
= —

The working capital turnover ratio for Worthington Steel Inc. demonstrates fluctuations over the observed period from February 28, 2023, to February 28, 2025. Initially, the ratio was at 7.56 in February 2023, reflecting the efficiency with which the company utilized its working capital to generate sales. By May 31, 2023, the ratio slightly declined to 7.19, indicating a modest decrease in turnover efficiency.

Subsequently, the ratio increased to 7.72 as of August 31, 2023, suggesting improved utilization of working capital in generating sales, before declining again to 6.89 by November 30, 2023. This downward movement may imply a period of reduced efficiency or increased working capital relative to sales.

The strongest observed point occurs on February 29, 2024, with a ratio of 9.03, signifying a marked improvement in the company's working capital efficiency during this period. This increase could be attributed to enhanced sales performance, better working capital management, or both. The ratio then slightly decreased to 8.95 as of May 31, 2024, and further to 8.45 by August 31, 2024, before stabilizing approximately at 8.44 on November 30, 2024. This stabilization suggests relatively steady operational efficiency in managing working capital relative to sales.

The ratio continued to decline marginally to 8.10 by February 28, 2025, indicating a slight decrease in working capital turnover efficiency compared to the previous periods. Notably, data for May 31, 2025, is unavailable, preventing further analysis beyond early 2025.

Overall, the company experienced periods of both improvement and decline in its working capital turnover ratio, with the highest efficiency observed at the end of February 2024 and a gradual normalization afterward. This pattern may reflect variations in sales volume, inventory management, receivables collection, or payables management, warranting further analysis to understand underlying operational factors influencing these fluctuations.


Peer comparison

May 31, 2025

Company name
Symbol
Working capital turnover
Worthington Steel Inc
WS
Gibraltar Industries Inc
ROCK
3.30
Insteel Industries Inc
IIIN
2.40
Worthington Industries Inc
WOR
2.36