Worthington Steel has a quick ratio of 1.10. It generally indicates good short-term financial strength.
The historical rank and industry rank for Worthington Steel's Quick Ratio or its related term are showing as below:
FRA:Z2J'
s Quick Ratio Range Over the Past 10 Years
Min: 0.95 Med: 1.01 Max: 1.2
Current: 1.1
During the past 4 years, Worthington Steel's highest Quick Ratio was 1.20. The lowest was 0.95. And the median was 1.01.
FRA:Z2J's Quick Ratio is ranked better than 54.98% of 642
companies
in the Steel industry
Industry Median: 1.01
vs FRA:Z2J: 1.10
Worthington Steel Quick Ratio Historical Data
The historical data trend for Worthington Steel's Quick Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Worthington Steel's Quick Ratio
For the Steel subindustry, Worthington Steel's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Worthington Steel's Quick Ratio Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, Worthington Steel's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Worthington Steel's Quick Ratio falls into.
Worthington Steel Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Worthington Steel's Quick Ratio for the fiscal year that ended in May. 2024 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Worthington Steel (FRA:Z2J) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Worthington Steel Quick Ratio Related Terms
Thank you for viewing the detailed overview of Worthington Steel's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Worthington Steel Inc is a processor of carbon flat-rolled steel, a producer of laser-welded solutions, and a provider of electrical steel laminations. The company has manufacturing facilities across the United States, Canada, China, India, Germany and Mexico. It buys coils of steel from primary steel producers and processes them to precise type, thickness, length, width, shape, and surface quality required by customer specifications. The company's product lines and processing capabilities include; carbon flat-rolled steel processing, electrical steel laminations, and tailor welded products. Geographically, the company generates a majority of its revenue from the United States followed by Canada, Mexico, and other regions.
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