Worthington Steel Inc (WS)
Working capital turnover
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,431,528 | 3,301,228 | 3,363,828 | 3,630,468 | |||
| Total current assets | US$ in thousands | 1,001,800 | 1,022,900 | 1,086,500 | 1,058,390 | — | — | 20,052 |
| Total current liabilities | US$ in thousands | 618,400 | 645,400 | 595,300 | 612,492 | — | — | — |
| Working capital turnover | 8.95 | 8.74 | 6.85 | 8.14 |
May 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,431,528K ÷ ($1,001,800K – $618,400K)
= 8.95
Based on the data provided, Worthington Steel Inc's working capital turnover ratio has fluctuated over the past several quarters. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue. A higher ratio indicates that the company is generating more sales revenue per dollar of working capital.
In this case, Worthington Steel Inc's working capital turnover ratio ranged from 6.85 to 8.95 over the last four quarters. The increase in the ratio from 6.85 in November 2023 to 8.95 in May 2024 suggests that the company improved its efficiency in utilizing working capital to generate sales revenue during that period.
Overall, a consistently high working capital turnover ratio indicates that Worthington Steel Inc is effectively managing its working capital to support its operations and generate revenue. It is essential for the company to monitor this ratio regularly to ensure optimal efficiency in its working capital management.
Peer comparison
May 31, 2024