Worthington Steel Inc (WS)
Cash ratio
| May 31, 2025 | May 31, 2024 | Aug 31, 2023 | May 31, 2023 | Aug 31, 2022 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 92,900 | 40,200 | 32,678 | 32,678 | 20,052 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 631,500 | 618,400 | 478,390 | 478,390 | 657,949 |
| Cash ratio | 0.15 | 0.07 | 0.07 | 0.07 | 0.03 |
May 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($92,900K
+ $—K)
÷ $631,500K
= 0.15
The cash ratio for Worthington Steel Inc. demonstrates a progressive trend over the analyzed periods, indicating an improving liquidity position in relation to its immediate cash and cash equivalents relative to current liabilities. On August 31, 2022, the cash ratio was notably low at 0.03, suggesting that the company had a very limited proportion of cash and cash equivalents to cover its current liabilities, reflecting a potentially tight liquidity stance at that time.
By May 31, 2023, the cash ratio increased to 0.07, representing a doubling from the previous period and signaling a modest enhancement in liquidity. This upward movement was maintained through August 31, 2023, with the ratio remaining steady at 0.07, indicating stability in the company's short-term cash position. The ratio persisted at this level through May 31, 2024, further emphasizing consistency in liquidity management.
A notable increase is observed by May 31, 2025, when the cash ratio rises to 0.15. This figure doubles once again relative to the previous period and signifies a meaningful strengthening in the company's ability to meet its short-term obligations purely with cash and cash equivalents.
Overall, the trend suggests that Worthington Steel Inc. has been gradually improving its liquidity over the observed time frame, with a significant enhancement occurring in the most recent period. The increasing cash ratio could indicate efforts to bolster liquidity, reduce reliance on other current assets, or improve cash management practices. However, despite this improvement, the ratios remain below 0.20, implying that while liquidity has improved, the company may still operate with limited immediate cash coverage for current liabilities relative to some industry standards.
Peer comparison
May 31, 2025