Worthington Steel, Inc. (WS) — payout ratio, three ways
Fiscal year ending 2026-05-31 · sector Materials · payout ratios computed from SEC filings, not taken from a data vendor.
| Basis | Payout | Why it differs |
|---|---|---|
| GAAP earnings | 376.5% | A single year's earnings for a commodity producer can be several times the through-cycle average. This ratio computed in a trough looks alarming and in a peak looks trivial; neither describes whether the dividend is affordable across a cycle. |
| Operating cash flow | 16.2% | Before capital spending, so it understates the payout that free cash flow shows. |
| Free cash flow | 40.8% | The most honest single-year figure here, because it nets out the capital spending that commodity producers cut hard in a downturn — which is also why it flatters a trough year. |
Spread between highest and lowest: 360 percentage points. Same filings, different denominators.
Coverage rating 28 / 100 — Strained. ? Peer standing 24/50Direction 4/30Stability 0/20
Free cash flow payout, last 3 years
| Fiscal year | Payout |
|---|---|
| 2026-05-31 | 40.8% |
| 2025-05-31 | 31.9% |
| 2024-05-31 | 8.2% |
Coverage has deteriorated three years running, 8.2% to 40.8%. Still covered, but moving the wrong way.
Among the 36 materials companies here, 47% pay out a larger share on this basis.
The arithmetic
- GAAP earnings — dividends declared per share $0.64 ÷ diluted EPS $0.17
- Operating cash flow — dividends paid $32.6m ÷ operating cash flow $201.2m
- Free cash flow — dividends paid $32.6m ÷ (operating cash flow $201.2m − capex $121.2m)
Where the figures came from
- 10-K filed 2026-07-30 · accession
0001968487-26-000026
Every one is public at sec.gov and free to check. That is the point — you should not have to take my word for any of it.
Computed by an open pipeline reading SEC XBRL directly. If any number here looks wrong to you, tell me — that is more useful to me than agreement.