Worthington Steel Inc (WS)
Profitability ratios
Return on sales
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | |
|---|---|---|---|---|
| Gross profit margin | 12.84% | 11.30% | 8.80% | 8.93% |
| Operating profit margin | 5.77% | 4.37% | 2.08% | 3.31% |
| Pretax margin | 5.97% | 4.37% | 1.88% | 3.12% |
| Net profit margin | 4.52% | 3.25% | 1.26% | 2.16% |
Worthington Steel Inc's profitability ratios have shown a generally increasing trend over the past four quarters. The gross profit margin has increased from 8.80% in November 2023 to 12.84% in May 2024, indicating an improvement in the company's ability to generate revenue after accounting for the cost of goods sold.
Similarly, the operating profit margin has also shown improvement, increasing from 2.08% in November 2023 to 5.77% in May 2024. This indicates that the company has been able to control its operating expenses more effectively, resulting in higher profitability from its core business operations.
The pretax margin reflects the company's ability to generate profits before accounting for taxes. Worthington Steel Inc's pretax margin has increased from 1.88% in November 2023 to 5.97% in May 2024, showing a significant improvement in overall profitability.
Finally, the net profit margin, which measures the company's net income as a percentage of total revenue, has also increased from 1.26% in November 2023 to 4.52% in May 2024. This indicates that Worthington Steel Inc has been able to effectively manage its expenses and generate higher profits for its shareholders.
Overall, the upward trend in these profitability ratios suggests that Worthington Steel Inc has been successful in improving its financial performance and increasing its profitability over the past few quarters.
Return on investment
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | |
|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.60% | 7.79% | 3.69% | 6.47% |
| Return on assets (ROA) | 8.31% | 5.80% | 2.24% | 4.23% |
| Return on total capital | 21.71% | 16.45% | 7.75% | 13.24% |
| Return on equity (ROE) | 15.74% | 11.44% | 4.08% | 7.99% |
Worthington Steel Inc has shown an improvement in its profitability ratios over the recent quarters. The Operating return on assets (Operating ROA) has steadily increased from 3.69% in November 2023 to 10.60% in May 2024, indicating the company's efficiency in generating profits from its assets through operations. This suggests that Worthington Steel has been able to effectively manage its assets to generate operating income.
Similarly, the Return on assets (ROA) has shown an upward trend, rising from 2.24% in November 2023 to 8.31% in May 2024. This indicates that the company has been successful in generating profits from its total assets over the period.
The Return on total capital has also seen an improvement, increasing from 7.75% in November 2023 to 21.71% in May 2024. This ratio reflects the company's ability to generate returns from both debt and equity capital employed in the business.
Furthermore, the Return on equity (ROE) has shown a positive trajectory, increasing from 4.08% in November 2023 to 15.74% in May 2024. This signifies the company's ability to deliver higher returns to its shareholders on their equity investments.
Overall, Worthington Steel Inc has demonstrated an enhanced profitability performance in recent quarters, as evidenced by the positive trends in its profitability ratios.