Worthington Steel Inc (WS)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 79,100 | 144,500 | 195,300 | 169,100 | 205,050 | 235,050 | 179,250 | 166,550 | 133,060 | 78,920 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 7.36% | 14.27% | 19.32% | 16.76% | 20.81% | 25.07% | 17.23% | 16.93% | 12.93% | 7.67% |
May 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $79,100K ÷ ($—K + $1,074,100K)
= 7.36%
The return on total capital for Worthington Steel Inc. demonstrates a notable upward trend from February 28, 2023, through November 30, 2023, beginning at approximately 7.67% and rising steadily to approximately 17.23%. This indicates an improving efficiency in generating profits relative to the company's total capital during this period. The most significant increase occurs between May 31, 2023, and February 29, 2024, when the return surpasses 25.07%, signifying enhanced profitability or better utilization of capital assets.
Subsequently, the return diminishes somewhat in the period extending through May 31, 2024, declining to about 20.81%, and further decreases to roughly 16.76% by August 31, 2024. This suggests a moderation in the company's ability to generate returns on its total capital after reaching a peak, potentially due to changes in operational performance, market conditions, or capital structure adjustments.
By November 30, 2024, the return slightly rebounds to approximately 19.32%, then decreases again to approximately 14.27% by February 28, 2025. The latest data for May 31, 2025, indicates a further decline to 7.36%. Overall, the data depict a cycle of initial growth, reaching a peak around late 2023, followed by a notable decline in early 2025. This fluctuation may reflect variations in operational efficiency, investment performance, or strategic shifts impacting the company's profitability relative to its total capital base over the analyzed period.
Peer comparison
May 31, 2025