Worthington Steel Inc (WS)
Current ratio
| May 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | ||
|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,001,800 | 980,886 | 1,267,100 | 940,120 |
| Total current liabilities | US$ in thousands | 618,400 | 478,390 | 657,949 | 506,103 |
| Current ratio | 1.62 | 2.05 | 1.93 | 1.86 |
May 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,001,800K ÷ $618,400K
= 1.62
The current ratio, a key liquidity metric, reflects Worthington Steel Inc's ability to meet its short-term obligations with its current assets. Looking at the trend over the past four years, we observe a fluctuation in Worthington Steel Inc's current ratio.
As of May 31, 2024, the current ratio stands at 1.62, indicating a decrease from the previous period. A current ratio below 2 may suggest potential challenges in meeting short-term obligations with current assets alone. However, a current ratio above 1 implies that the company has sufficient current assets to cover its current liabilities.
Comparing the current ratio to prior years, we see that it was highest in August 31, 2023, at 2.05, signaling a better ability to cover short-term obligations with current assets. Across the years, the current ratio has shown variability but generally remained above 1, indicating a basic level of liquidity.
In summary, while Worthington Steel Inc's current ratio has fluctuated over the past four years, it is currently below the benchmark of 2, indicating the need for closer monitoring of its short-term liquidity position. Further analysis of the components of current assets and liabilities would provide a more detailed insight into the company's short-term financial health.
Peer comparison
May 31, 2024