Worthington Steel Inc (WS)
Cash ratio
| May 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | ||
|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 40,200 | 32,678 | 20,052 | 17,459 |
| Short-term investments | US$ in thousands | — | — | — | — |
| Total current liabilities | US$ in thousands | 618,400 | 478,390 | 657,949 | 506,103 |
| Cash ratio | 0.07 | 0.07 | 0.03 | 0.03 |
May 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($40,200K
+ $—K)
÷ $618,400K
= 0.07
The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. Worthington Steel Inc's cash ratio has shown improvement over the past few years. As of May 31, 2024, the cash ratio stands at 0.07, indicating that the company has $0.07 in cash and cash equivalents for every $1 of current liabilities. This ratio has remained stable compared to the previous period ending Aug 31, 2023.
In the prior years, the cash ratio was lower, at 0.03 for both Aug 31, 2022, and Aug 31, 2021, suggesting the company had lesser cash reserves relative to its short-term obligations during those periods. The consistent increase in the cash ratio indicates that Worthington Steel Inc may be managing its liquidity more effectively, potentially enhancing its ability to meet its short-term financial commitments. However, it is important to assess this ratio in conjunction with other liquidity and financial metrics to gain a more comprehensive understanding of the company's overall financial health.
Peer comparison
May 31, 2024