Worthington Steel Inc (WS)
Debt-to-capital ratio
| May 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | ||
|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 0 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 985,300 | 1,028,960 | 1,133,150 | 661,330 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 |
May 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $0K ÷ ($0K + $985,300K)
= 0.00
The debt-to-capital ratio of Worthington Steel Inc has consistently been reported as 0.00 over the past four years, from August 31, 2021, to May 31, 2024. This indicates that the company has not relied on debt to fund its operations or expansion, as its capital structure has been entirely financed by equity during this period. A debt-to-capital ratio of 0.00 can suggest a conservative financial approach, as it implies a low level of financial risk and a strong equity base to support the company's activities. It is important to note that while a low debt-to-capital ratio is generally seen as favorable, it may also indicate missed opportunities for leveraging debt for potential growth or tax advantages. Therefore, further analysis of Worthington Steel Inc's capital structure and overall financial strategy would be beneficial to understand the reasons behind this consistently low ratio.
Peer comparison
May 31, 2024