Worthington Steel Inc (WS)
Cash ratio
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 40,200 | 60,800 | 214,400 | 27,401 | — | — | -20,052 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | 40,104 |
| Total current liabilities | US$ in thousands | 618,400 | 645,400 | 595,300 | 612,492 | — | — | — |
| Cash ratio | 0.07 | 0.09 | 0.36 | 0.04 | — | — | — |
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 for Worthington Steel Inc has displayed significant fluctuations over the past few quarters. The ratio declined from 0.09 in February 2024 to 0.07 in May 2024, indicating a potential decrease in the company's ability to cover its short-term liabilities with its available cash. The sharp decrease could suggest a decrease in cash holdings relative to current liabilities.
Prior to the decrease, there was a notable improvement in the cash ratio from 0.04 in August 2023 to 0.36 in November 2023, indicating a substantial increase in liquidity and the company's ability to meet short-term obligations from its cash reserves. This jump in the ratio may have been the result of an increase in cash holdings or a reduction in short-term liabilities during that period.
The absence of data for the cash ratio in prior periods such as February 28, 2023, November 30, 2022, and August 31, 2022 limits a comprehensive trend analysis. However, it is essential to monitor the cash ratio closely in future periods to assess Worthington Steel Inc's liquidity position and its ability to manage short-term financial obligations effectively.
Peer comparison
May 31, 2024