Worthington Steel Inc (WS)
Operating return on assets (Operating ROA)
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 197,899 | 144,099 | 70,099 | 120,159 | |||
| Total assets | US$ in thousands | 1,866,400 | 1,849,000 | 1,897,400 | 1,857,750 | — | — | — |
| Operating ROA | 10.60% | 7.79% | 3.69% | 6.47% |
May 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $197,899K ÷ $1,866,400K
= 10.60%
Worthington Steel Inc's operating return on assets (ROA) has shown fluctuating trends over the past few quarters. As of May 31, 2024, the operating ROA stands at 10.60%, indicating that the company generated $10.60 in operating income for every $100 of assets it controls. This marks an improvement from the previous quarter where the operating ROA was 7.79%.
The upward trend in operating ROA suggests that Worthington Steel Inc has been effectively utilizing its assets to generate operating income, which is a positive sign for the company's operational efficiency and profitability. However, it's important to note that there was a significant increase in operating ROA from 3.69% in November 2023 to 6.47% in August 2023, indicating some volatility in the company's performance during that period.
Overall, the increasing trend in operating ROA for Worthington Steel Inc indicates improved operational efficiency and effectiveness in utilizing its assets to generate profits. Investors and analysts may view this positively as it shows the company's ability to generate returns from its asset base.
Peer comparison
May 31, 2024