WS (Worthington Steel) ROCE % : 12.32% (As of Aug. 2024)

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What is Worthington Steel ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Worthington Steel's annualized ROCE % for the quarter that ended in Aug. 2024 was 12.32%.

Worthington Steel ROCE % Historical Data

The historical data trend for Worthington Steel's ROCE % 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.

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Worthington Steel ROCE % Chart

Worthington Steel Annual Data

Trend

May21

May22

May23

May24

ROCE %

25.96

22.50

9.71

17.54

Worthington Steel Quarterly Data
	May21	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24
ROCE %	Get a 7-Day Free Trial						25.16	-1.38	22.13	25.35	12.32

Worthington Steel ROCE % Calculation

Worthington Steel's annualized ROCE % for the fiscal year that ended in May. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: May. 2024 )		(A: May. 2023 )		(A: May. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: May. 2024 )		(A: May. 2023 )		(A: May. 2024 )
	=	222.2	/	( ( (1764.4 - 478.4)	+	(1866.4 - 618.4) )	/ 2 )
	=	222.2	/	( (1286	+	1248)	/ 2 )
	=	222.2	/	1267
	=	17.54 %

Worthington Steel's ROCE % of for the quarter that ended in Aug. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Aug. 2024 )		(Q: May. 2024 )		(Q: Aug. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Aug. 2024 )		(Q: May. 2024 )		(Q: Aug. 2024 )
	=	155.2	/	( ( (1866.4 - 618.4)	+	(1829.4 - 557.9) )	/ 2 )
	=	155.2	/	( ( 1248	+	1271.5 )	/ 2 )
	=	155.2	/	1259.75
	=	12.32 %

(1) Note: The EBIT data used here is four times the quarterly (Aug. 2024) EBIT data.

Worthington Steel (NYSE:WS) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Worthington Steel ROCE % Related Terms

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Worthington Steel Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Worthington Steel Inc (NYSE:WS) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

Z2J:Germany

Address

100 Old Wilson Bridge Road, Columbus, OH, USA, 43085

Website

https://www.worthingtonsteel.com

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.