Worthington Steel Inc (WS)
Return on total capital
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 213,953 | 154,253 | 80,653 | 130,213 | |||
| Long-term debt | US$ in thousands | 0 | 0 | 0 | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 985,300 | 937,600 | 1,040,300 | 983,697 | — | — | 1,266,360 |
| Return on total capital | 21.71% | 16.45% | 7.75% | 13.24% |
May 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $213,953K ÷ ($0K + $985,300K)
= 21.71%
Worthington Steel Inc's return on total capital has shown fluctuations over the past several quarters. The return on total capital was at 21.71% as of May 31, 2024, representing a significant improvement compared to the previous periods. This indicates that the company generated a return of 21.71% on the total capital deployed in its operations during this period.
In the preceding quarter, the return on total capital was 16.45% as of February 29, 2024, displaying a decrease compared to the most recent period. However, it still indicates a fairly strong performance in terms of generating returns relative to the total capital invested.
Looking back further, the return on total capital was 7.75% as of November 30, 2023, which was notably lower than the more recent figures. This suggests that the company's performance in generating returns on its total capital was weaker during that period.
Prior to that, the return on total capital was 13.24% as of August 31, 2023, showing an improvement from the November 2023 results but still lower than the latest figures.
Overall, Worthington Steel Inc's return on total capital has varied in recent quarters, with the most recent period showcasing a notably higher return compared to the preceding quarters. This indicates fluctuations in the company's ability to generate returns on the total capital employed in its operations. Further analysis and monitoring of these trends may be necessary to understand the factors driving these fluctuations and to assess the company's overall capital efficiency.
Peer comparison
May 31, 2024