Worthington Steel Inc (WS)

Quick ratio

May 31, 2025 Feb 28, 2025 Nov 30, 2024 Aug 31, 2024 May 31, 2024 Feb 29, 2024 Nov 30, 2023 Aug 31, 2023 May 31, 2023 Feb 28, 2023
Cash US$ in thousands 63,300 52,000 36,000 40,200 60,800 214,400 27,401 32,678 32,678
Short-term investments US$ in thousands
Receivables US$ in thousands 420,700 382,100 451,000 476,800 475,000 430,100 501,836 465,800 472,317
Total current liabilities US$ in thousands 631,500 521,000 467,700 557,900 618,400 645,400 595,300 612,492 478,390 478,390
Quick ratio 0.00 0.93 0.93 0.87 0.84 0.83 1.08 0.86 1.04 1.06

May 31, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($—K + $—K + $—K) ÷ $631,500K
= 0.00

The quick ratio of Worthington Steel Inc. exhibits fluctuations over the analyzed period, reflecting changes in the company's short-term liquidity position. As of February 28, 2023, the quick ratio stood at 1.06, indicating that the company had slightly more liquid assets than current liabilities. This ratio remained relatively stable through May 31, 2023, at 1.04, suggesting consistent liquidity levels.

However, a decline is observed by August 31, 2023, when the ratio decreased to 0.86, signaling a potential weakening in liquidity, as the company's liquid assets became less sufficient relative to its current liabilities. Interestingly, there is a recovery noted on November 30, 2023, with the ratio increasing to 1.08, indicating an improvement in the company's liquidity buffer.

The subsequent data points show a downward trend through February 29, 2024, where the ratio further drops to 0.83, before marginally increasing again to 0.84 on May 31, 2024, and then to 0.87 on August 31, 2024. These fluctuations suggest continued variability in short-term liquidity, though remaining near the 0.83 to 0.87 range, potentially indicating a cautious liquidity position.

By November 30, 2024, the ratio climbs to 0.93, approaching a more stable level, which persists into the February 28, 2025 measurement, also at 0.93. The ratio then declines sharply to 0.00 by May 31, 2025, which likely indicates data omission, reporting error, or the absence of liquid assets in relation to current liabilities at that point.

Overall, the data portrays Worthington Steel Inc. maintaining a quick ratio generally close to or below 1.00 over the period, with intermittent improvements and declines. These fluctuations suggest periods of tighter liquidity management, and the prevalent ratios below 1.00 may imply reliance on less liquid current assets or potential liquidity constraints. The significant drop to zero in May 2025 warrants further investigation to clarify whether it represents an anomaly or underlying operational issues.


Peer comparison

May 31, 2025