Worthington Steel Inc (WS)
Return on total capital
| May 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | ||
|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 158,331 | 203,768 | 225,288 |
| Long-term debt | US$ in thousands | 0 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 985,300 | 1,028,960 | 1,133,150 | 661,330 |
| Return on total capital | 0.00% | 15.39% | 17.98% | 34.07% |
May 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($0K + $985,300K)
= 0.00%
Worthington Steel Inc's return on total capital has experienced a noticeable decline over the past three fiscal years. From a robust 34.07% in August 2021, the return on total capital dropped to 17.98% in August 2022 and further decreased to 15.39% in August 2023. The most recent data for May 31, 2024, indicates that the return on total capital has fallen to 0.00%, signaling a significant challenge in generating profits relative to the total capital employed by the company. This downward trend may raise concerns regarding the company's operational efficiency and potentially indicate potential underlying issues that may require further investigation and corrective actions.
Peer comparison
May 31, 2024