Worthington Steel Inc (WS)
Return on assets (ROA)
| May 31, 2025 | May 31, 2024 | Aug 31, 2023 | May 31, 2023 | Aug 31, 2022 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 110,700 | 154,700 | 84,324 | 87,100 | 180,375 |
| Total assets | US$ in thousands | 1,961,800 | 1,866,400 | 1,764,360 | 1,764,360 | 2,084,030 |
| ROA | 5.64% | 8.29% | 4.78% | 4.94% | 8.66% |
May 31, 2025 calculation
ROA = Net income ÷ Total assets
= $110,700K ÷ $1,961,800K
= 5.64%
The return on assets (ROA) for Worthington Steel Inc. exhibits notable fluctuations over the analyzed period. As of August 31, 2022, the company's ROA stood at 8.66%, indicating a relatively efficient utilization of its assets to generate net income at that time. By May 31, 2023, the ROA declined significantly to 4.94%, reflecting a decrease in profitability relative to the company's asset base. The downward trend continued slightly through August 31, 2023, when the ROA was recorded at 4.78%, suggesting a persistent but marginal decline in asset efficiency.
However, the ROA experienced a substantial recovery by May 31, 2024, rising to 8.29%, surpassing previous levels and indicating improved profitability and asset utilization. Still, by May 31, 2025, the ROA declined again to 5.64%, reflecting some contraction in performance.
Overall, the ROA trend reveals periods of decline and recovery, with the most significant improvement occurring between August 2023 and May 2024. This pattern suggests that while the company faced challenges impacting profitability on its assets during certain periods, recent performance improvements have elevated its asset efficiency, albeit with some subsequent weakening. These variations should be analyzed in conjunction with company-specific factors such as operational changes, market conditions, or strategic initiatives to fully understand the underlying causes of the fluctuating ROA.
Peer comparison
May 31, 2025