Worthington Steel Inc (WS)
Solvency ratios
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | ||||
|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | — | — | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | — | — | 0.00 |
| Financial leverage ratio | 1.89 | 1.97 | 1.82 | 1.89 | — | — | 0.00 |
The solvency ratios of Worthington Steel Inc as indicated in the provided data reflect a very strong financial position with consistently low levels of debt relative to assets, capital, and equity. The debt-to-assets, debt-to-capital, and debt-to-equity ratios all consistently stand at 0.00 across the reported periods, indicating that the company operates with minimal financial leverage and is not overly reliant on debt to finance its operations.
Moreover, the financial leverage ratio has ranged between 1.82 and 1.97, with the highest level being 1.97 in February 2024. This ratio suggests that the company's assets are financed by equity to a greater extent compared to debt, indicating a conservative financial structure.
Overall, based on the solvency ratios provided, Worthington Steel Inc appears to have a stable financial position with low levels of debt and a healthy capital structure that may be more resilient to economic downturns or financial distress.
Coverage ratios
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | |
|---|---|---|---|---|
| Interest coverage | 38.90 | 49.76 | 73.32 | 144.68 |
Worthington Steel Inc has consistently displayed strong interest coverage ratios over the last four reported periods. The interest coverage ratio has shown a decreasing trend over these periods, starting at a high of 144.68 in August 31, 2023, and decreasing to 38.90 as of May 31, 2024.
An interest coverage ratio greater than 1 indicates that the company is generating enough operating income to cover its interest expenses. Worthington Steel Inc's ratios well above 1 for all periods suggest that the company has been able to meet its interest obligations comfortably.
However, the declining trend in the interest coverage ratio should be monitored closely as it may indicate a decrease in the company's ability to meet its interest expenses from its operating income. It is essential for stakeholders to assess the reasons behind this trend and evaluate the impact on the company's financial health and stability.