Worthington Steel Inc (WS)
Financial leverage ratio
| May 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | ||
|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,866,400 | 1,764,360 | 2,084,030 | 1,366,650 |
| Total stockholders’ equity | US$ in thousands | 985,300 | 1,028,960 | 1,133,150 | 661,330 |
| Financial leverage ratio | 1.89 | 1.71 | 1.84 | 2.07 |
May 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,866,400K ÷ $985,300K
= 1.89
The financial leverage ratio for Worthington Steel Inc has exhibited fluctuations over the past four years. The ratio decreased from 2.07 in August 2021 to 1.84 in August 2022, indicating a reduction in the company's reliance on debt to finance its operations. However, the ratio then increased to 1.71 in August 2023, reflecting a slightly higher level of financial leverage. By May 31, 2024, the financial leverage ratio rose further to 1.89, suggesting that the company may have increased its debt in relation to its equity.
Overall, the trend in the financial leverage ratio for Worthington Steel Inc shows variability in the extent to which the company uses debt in its capital structure. It is essential for stakeholders to monitor these fluctuations in financial leverage to assess the company's risk profile and financial health accurately.
Peer comparison
May 31, 2024