Worthington Steel Inc (WS)
Quick ratio
| May 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | ||
|---|---|---|---|---|---|
| Cash | US$ in thousands | 40,200 | 32,678 | 20,052 | 17,459 |
| Short-term investments | US$ in thousands | — | — | — | — |
| Receivables | US$ in thousands | 476,800 | — | — | — |
| Total current liabilities | US$ in thousands | 618,400 | 478,390 | 657,949 | 506,103 |
| Quick ratio | 0.84 | 0.07 | 0.03 | 0.03 |
May 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($40,200K
+ $—K
+ $476,800K)
÷ $618,400K
= 0.84
The quick ratio of Worthington Steel Inc has shown a significant improvement from 0.03 in August 2021 to 0.84 in May 2024. This indicates a strong ability to meet its short-term liabilities with its most liquid assets. However, it is important to note the sharp fluctuations in the quick ratio over the years, with a low of 0.03 in both August 2022 and August 2023. This could be a cause for concern as it suggests potential liquidity issues in those periods. Overall, the current quick ratio of 0.84 reflects a healthier financial position for Worthington Steel Inc compared to prior years, but monitoring liquidity trends and stability in the future remains crucial for sustainable financial health.
Peer comparison
May 31, 2024