Worthington Steel Inc (WS)
Current ratio
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | ||
|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,001,800 | 1,022,900 | 1,086,500 | 1,058,390 |
| Total current liabilities | US$ in thousands | 618,400 | 645,400 | 595,300 | 612,492 |
| Current ratio | 1.62 | 1.58 | 1.83 | 1.73 |
May 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,001,800K ÷ $618,400K
= 1.62
The current ratio measures a company's ability to meet its short-term obligations with its current assets. Worthington Steel Inc's current ratio has fluctuated over the past few quarters, ranging from 1.58 to 1.83.
In the most recent period (May 31, 2024), the current ratio stood at 1.62, indicating that the company had $1.62 in current assets for every $1 in current liabilities. This suggests that Worthington Steel Inc may have slightly less liquidity to cover its short-term obligations compared to the preceding quarter.
A decreasing current ratio could be a cause for concern, especially if it falls below 1. A ratio below 1 would indicate that the company may have difficulty meeting its short-term obligations with its current assets alone. Conversely, a ratio above 1 implies that the company has more than enough current assets to cover its short-term liabilities.
It is important for Worthington Steel Inc to monitor its current ratio over time and ensure it remains at a healthy level to maintain financial stability and meet its short-term obligations effectively.
Peer comparison
May 31, 2024