Worthington Steel Inc (WS)
Operating return on assets (Operating ROA)
| May 31, 2025 | May 31, 2024 | Aug 31, 2023 | May 31, 2023 | Aug 31, 2022 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 147,000 | 194,500 | 127,485 | 127,485 | 226,576 |
| Total assets | US$ in thousands | 1,961,800 | 1,866,400 | 1,764,360 | 1,764,360 | 2,084,030 |
| Operating ROA | 7.49% | 10.42% | 7.23% | 7.23% | 10.87% |
May 31, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $147,000K ÷ $1,961,800K
= 7.49%
The operating return on assets (operating ROA) of Worthington Steel Inc exhibits notable fluctuations over the analyzed period. As of August 31, 2022, the company reported an operating ROA of 10.87%, indicating a relatively strong efficiency in generating operating income from its assets at that time. By May 31, 2023, this ratio declined significantly to 7.23%, reflecting a decrease in operating performance relative to the company's asset base. The figure remained unchanged at 7.23% through August 31, 2023, suggesting a period of stability in operating efficiency.
Subsequently, by May 31, 2024, the operating ROA increased markedly to 10.42%, surpassing the earlier levels observed in August 2022 and May 2023. This upward trend suggests an improvement in the company's operational efficiency and profitability related to its asset base during this period. However, by May 31, 2025, the ratio decreased again to 7.49%, indicating a decline in operating performance that brought the ratio closer to the levels observed in mid-2023.
Overall, the operating ROA of Worthington Steel Inc demonstrates cyclical behavior characterized by periods of decline and recovery. The fluctuations may be attributable to variations in operational efficiency, changes in asset utilization, or external market factors influencing the company's performance. The recent data suggests a partial recovery in operating profitability relative to assets, although the ratio remains below the peak levels seen in August 2022.
Peer comparison
May 31, 2025