Worthington Steel Inc (WS)
Current ratio
| May 31, 2025 | May 31, 2024 | Aug 31, 2023 | May 31, 2023 | Aug 31, 2022 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,048,500 | 1,001,800 | 980,886 | 980,886 | 1,267,100 |
| Total current liabilities | US$ in thousands | 631,500 | 618,400 | 478,390 | 478,390 | 657,949 |
| Current ratio | 1.66 | 1.62 | 2.05 | 2.05 | 1.93 |
May 31, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,048,500K ÷ $631,500K
= 1.66
The analysis of the current ratio for Worthington Steel Inc. indicates a trend of fluctuating liquidity over the specified periods. As of August 31, 2022, the current ratio stood at 1.93, reflecting a liquidity position wherein the company's current assets were approximately 1.93 times its current liabilities, suggesting a reasonably comfortable short-term solvency position at that time. By May 31, 2023, the ratio slightly increased to 2.05, indicating an improved liquidity position with a greater buffer of current assets relative to short-term obligations.
This ratio remained steady through August 31, 2023, maintaining at 2.05, which suggests that the company's short-term liquidity remained stable during this period. However, a notable decline was observed by May 31, 2024, where the current ratio decreased to 1.62. This reduction indicates a decrease in current assets or an increase in current liabilities, implying a potential tightening of liquidity and a need for closer management of short-term assets and liabilities.
Subsequently, the ratio experienced a slight increase to 1.66 by May 31, 2025, suggesting a modest improvement in liquidity, although it remains below the earlier peaks seen in 2023.
Overall, the current ratio trend reveals that while Worthington Steel Inc. maintained relatively strong liquidity levels through 2022 and 2023, there was a discernible decline towards 2024, with a slight recovery afterward. These fluctuations highlight the importance of ongoing liquidity management to sustain financial stability and meet short-term obligations efficiently.
Peer comparison
May 31, 2025