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