Worthington Steel Inc (WS)
Return on equity (ROE)
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 110,700 | 108,200 | 143,400 | 124,600 | 155,072 | 166,396 | 122,796 | 112,996 | 84,240 | 49,832 |
| Total stockholders’ equity | US$ in thousands | 1,074,100 | 1,012,300 | 1,010,800 | 1,009,100 | 985,300 | 937,600 | 1,040,300 | 983,697 | 1,028,960 | 1,028,960 |
| ROE | 10.31% | 10.69% | 14.19% | 12.35% | 15.74% | 17.75% | 11.80% | 11.49% | 8.19% | 4.84% |
May 31, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $110,700K ÷ $1,074,100K
= 10.31%
The analysis of Worthington Steel Inc.'s return on equity (ROE) over the specified periods reveals a pattern of upward and downward fluctuations, indicating dynamic changes in the company's profitability relative to shareholders' equity. Beginning with a ROE of approximately 4.84% as of February 28, 2023, the metric exhibits a steady increase, reaching 8.19% by May 31, 2023, and continuing its ascent to 11.49% as of August 31, 2023. The trend persists into November 30, 2023, with a marginal increase to 11.80%, signaling improvements in the company's efficiency in generating profit from equity investments.
The upward momentum accelerates notably by February 29, 2024, with the ROE surging to 17.75%, suggesting a period of enhanced profitability and potentially more efficient operations or favorable market conditions. However, this peak is followed by a decline in subsequent periods, with the ROE declining to 15.74% as of May 31, 2024, and further decreasing to 12.35% by August 31, 2024. Such movements could be attributed to factors such as increased equity base, reduced net income, or broader industry challenges impacting profitability metrics.
Mid to late 2024, the ROE demonstrates continued fluctuations, with a slight recovery to 14.19% by November 30, 2024, before decreasing again to 10.69% by February 28, 2025. The data indicates a possible stabilization or slight recovery in the company's profitability in the most recent period, with a ROE of approximately 10.31% as of May 31, 2025.
Overall, the ROE trend suggests that Worthington Steel Inc. experienced a significant rise in profitability efficiency from early 2023 through early 2024, followed by a period of volatility and partial decline, yet maintaining levels above initial values. These movements could reflect underlying changes in net income, equity structure, operational efficiency, or external economic factors influencing the company's financial performance over the analyzed periods.
Peer comparison
May 31, 2025