Worthington Steel Inc (WS)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,961,800 | 1,799,700 | 1,739,300 | 1,829,400 | 1,866,400 | 1,849,000 | 1,897,400 | 1,857,750 | 1,764,360 | 1,764,360 |
| 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 |
| Financial leverage ratio | 1.83 | 1.78 | 1.72 | 1.81 | 1.89 | 1.97 | 1.82 | 1.89 | 1.71 | 1.71 |
May 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,961,800K ÷ $1,074,100K
= 1.83
The financial leverage ratio of Worthington Steel Inc exhibits a generally upward trend with fluctuations over the reported periods. Starting at 1.71 on February 28, 2023, and remaining stable through May 31, 2023, the ratio increases to 1.89 by August 31, 2023. This indicates a rising proportion of debt relative to equity during this period, suggesting an increased reliance on borrowed funds to finance assets. The ratio peaks at 1.97 on February 29, 2024, reinforcing the trend of escalating financial leverage.
Following this peak, the ratio declines slightly to 1.89 in May 2024 and further decreases to 1.81 by August 31, 2024, implying a partial reduction in leverage or an improvement in equity position relative to debt. The downward trend continues into the subsequent periods, reaching 1.72 on November 30, 2024, and slightly increasing again to 1.78 on February 28, 2025, before rising marginally to 1.83 by May 31, 2025. Overall, the data suggests period-to-period variations with a net increase in financial leverage from the initial level in early 2023 to approximately mid-2025, reflecting changes in capital structure that could impact the company's risk profile and financial stability.
Peer comparison
May 31, 2025