Worthington Steel Inc (WS)
Return on total capital
| May 31, 2025 | May 31, 2024 | Aug 31, 2023 | May 31, 2023 | Aug 31, 2022 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 222,200 | 158,331 | 135,700 | 203,768 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,074,100 | 985,300 | 1,028,960 | 1,028,960 | 1,133,150 |
| Return on total capital | 0.00% | 22.55% | 15.39% | 13.19% | 17.98% |
May 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,074,100K)
= 0.00%
The analysis of Worthington Steel Inc.'s return on total capital over the specified periods reveals notable fluctuations and trends. As of August 31, 2022, the company reported a return on total capital of 17.98%, indicating a relatively strong efficiency in generating profits from its overall capital base at that time. Moving forward to May 31, 2023, the return decreased to 13.19%, suggesting a decline in the company's ability to generate returns relative to its total capital, which may reflect operational challenges or increased capital costs during this period.
Subsequently, as of August 31, 2023, the return improved to 15.39%, indicating a partial recovery in efficiency. This upward trend persisted into the period ending May 31, 2024, with a substantial increase to 22.55%. Such a significant uptick suggests an enhanced utilization of capital or improved profitability, possibly driven by operational efficiencies, better market conditions, or cost management strategies.
However, the most recent data point as of May 31, 2025, shows a return of 0.00%. This abrupt decline indicates that the company did not generate any measurable return on total capital during this period, which could be attributed to extraordinary losses, write-downs, or a complete operational downturn. This zero figure warrants further investigation to understand the underlying causes, as it may reflect severe financial distress or restructuring activities.
Overall, the historical pattern demonstrates considerable variability in Worthington Steel Inc.'s return on total capital, with periods of both improvement and decline, culminating in a potentially concerning zero return. This volatility underscores the importance of examining underlying operational, financial, and industry-specific factors influencing the company's capital efficiency over this timeframe.
Peer comparison
May 31, 2025