Worthington Steel Inc (WS)
Financial leverage ratio
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | ||
|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,866,400 | 1,849,000 | 1,897,400 | 1,857,750 |
| Total stockholders’ equity | US$ in thousands | 985,300 | 937,600 | 1,040,300 | 983,697 |
| Financial leverage ratio | 1.89 | 1.97 | 1.82 | 1.89 |
May 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,866,400K ÷ $985,300K
= 1.89
Worthington Steel Inc's financial leverage ratio has fluctuated over the past few quarters, ranging from a low of 1.82 to a high of 1.97. The financial leverage ratio provides insight into the company's level of debt relative to its equity. A higher ratio indicates higher financial leverage, implying that the company relies more on debt financing.
In the most recent period reported, the financial leverage ratio stood at 1.89, suggesting a moderate level of financial leverage. However, it is essential to note that the absence of data for certain periods, such as February 28, 2023, and November 30, 2022, limits a comprehensive trend analysis.
It is crucial for Worthington Steel Inc to monitor its financial leverage ratio consistently to ensure a balanced capital structure that supports sustainable growth and mitigates risks associated with excessive debt. Further trend analysis and comparison with industry benchmarks would provide additional insights into the company's capital structure efficiency.
Peer comparison
May 31, 2024