Worthington Steel Inc (WS)
Return on assets (ROA)
| May 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | ||
|---|---|---|---|---|---|
| Net income | US$ in thousands | 154,700 | 84,324 | 180,375 | 171,014 |
| Total assets | US$ in thousands | 1,866,400 | 1,764,360 | 2,084,030 | 1,366,650 |
| ROA | 8.29% | 4.78% | 8.66% | 12.51% |
May 31, 2024 calculation
ROA = Net income ÷ Total assets
= $154,700K ÷ $1,866,400K
= 8.29%
Worthington Steel Inc's return on assets (ROA) has shown fluctuations over the past four years. The ROA declined from 12.51% in August 2021 to 8.66% in August 2022 before further decreasing to 4.78% in August 2023. However, there was a noticeable improvement in ROA to 8.29% as of May 31, 2024.
This pattern suggests that the company's ability to generate profits relative to its total assets has been varying. The increase in ROA in 2024 indicates a potential recovery or improved efficiency in asset utilization compared to the previous years. It is important for Worthington Steel Inc to monitor and analyze the underlying factors contributing to these fluctuations to sustain or enhance its financial performance and overall profitability in the future.
Peer comparison
May 31, 2024