Worthington Steel Inc (WS)
Debt-to-capital ratio
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 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 for Worthington Steel Inc has consistently been reported as 0.00 over the past several quarters, indicating that the company has not used any debt to finance its operations and investments relative to its total capital structure. This could suggest that Worthington Steel Inc relies predominantly on equity financing, which might be considered a positive sign of financial stability and low financial risk. However, it is also important to note that a debt-to-capital ratio of 0.00 could potentially signal missed opportunities for leveraging debt to achieve higher returns on investment. Additionally, the lack of debt could limit the company's flexibility in capital structure management and strategic decision-making. Overall, while a low debt-to-capital ratio can reflect financial strength, Worthington Steel Inc may need to assess the optimal balance between debt and equity financing to support growth and maximize shareholder value in the long term.
Peer comparison
May 31, 2024