Worthington Steel Inc (WS)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,074,100 | 985,300 | 1,028,960 | 1,028,960 | 1,133,150 |
| ROE | 10.31% | 15.70% | 8.20% | 8.46% | 15.92% |
May 31, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $110,700K ÷ $1,074,100K
= 10.31%
The return on equity (ROE) of Worthington Steel Inc. has experienced notable fluctuations over the analyzed period. As of August 31, 2022, the company reported an ROE of approximately 15.92%, indicating relatively strong profitability relative to shareholders' equity at that time. This figure declined by May 31, 2023, to approximately 8.46%, representing a substantial decrease that could suggest challenges in generating profit relative to equity, possibly due to operational issues, increased expenses, or market pressures.
By August 31, 2023, the ROE remained relatively stable at approximately 8.20%, indicating little to no improvement from the prior period, and continuing to reflect a period of subdued profitability or increased equity base without a commensurate increase in net income. However, a significant rebound is observed by May 31, 2024, when the ROE rose sharply to approximately 15.70%, surpassing the previous peak observed in late 2022. This suggests a potential improvement in net income generation, operational efficiency, or strategic restructuring that positively affected shareholder returns.
Subsequently, as of May 31, 2025, the ROE decreased to approximately 10.31%. Although this still represents a higher level than the lows seen in 2023, it indicates a decline from the recent peak in 2024. The variation in ROE over this period underscores a cycle of volatility in profitability, which may be driven by changes in net income margins, leverage, or equity base.
Overall, the trend demonstrates periods of both decline and recovery, with the most recent figures indicating moderate profitability relative to shareholders' equity. This pattern warrants further investigation into factors influencing net income and equity structure to better understand the underlying drivers of these fluctuations.
Peer comparison
May 31, 2025