AZZ Incorporated (AZZ)

Short-term

Turnover ratios

Based on the provided data, let's analyze the activity ratios of AZZ Incorporated:

1. Inventory Turnover:
- The inventory turnover ratio measures how effectively a company manages its inventory. AZZ Inc. had an inventory turnover of 7.00 in February 28, 2021, which decreased to 5.37 in February 28, 2022. However, there was an improvement in the subsequent years, with ratios of 7.14, 9.98, and 10.64 for the years ending in February 28, 2023, February 29, 2024, and February 28, 2025, respectively.
- The increasing trend in inventory turnover suggests that AZZ Inc. has become more efficient in managing its inventory over the years, which could indicate better sales and operational performance.

2. Receivables Turnover:
- The receivables turnover ratio indicates how quickly a company collects its accounts receivable. In this case, data is not provided for receivables turnover for the respective years, so we cannot assess the effectiveness of AZZ Inc. in collecting its receivables.

3. Payables Turnover:
- Similarly, no data is available for payables turnover for the given years, so the efficiency of AZZ Inc. in managing its payables cannot be evaluated.

4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales. AZZ Inc. had a working capital turnover of 4.42 in February 28, 2021, which increased to 3.82 in February 28, 2022 and further improved to 5.75, 8.90, and 10.22 for the years ending in February 28, 2023, February 29, 2024, and February 28, 2025, respectively.
- The increasing trend in working capital turnover indicates that AZZ Inc. efficiently used its working capital to generate sales, reflecting improved operational efficiency and potentially better financial performance.

In conclusion, AZZ Incorporated has shown positive improvement in managing its inventory efficiently and utilizing its working capital effectively over the years. However, due to the lack of data on receivables and payables turnover, a complete assessment of the company's overall activity ratios cannot be provided.

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Average number of days

Based on the provided data on AZZ Incorporated's activity ratios:

1. Days of Inventory on Hand:
- The days of inventory on hand have fluctuated over the years, decreasing from 52.16 days on February 28, 2021, to 34.30 days on February 28, 2025.
- The decreasing trend in days of inventory on hand indicates that AZZ Incorporated has been managing its inventory efficiently by selling goods quickly or optimizing its production processes.

2. Days of Sales Outstanding (DSO):
- The data does not provide information on the days of sales outstanding for any of the years, indicating that specific details on this activity ratio are not available.
- Without a value for DSO, it is challenging to assess the efficiency of AZZ Incorporated in collecting accounts receivable promptly from its customers.

3. Number of Days of Payables:
- Similar to DSO, the data does not specify the number of days of payables for any of the years, suggesting that details on this ratio are not available.
- The absence of information on the days of payables makes it difficult to evaluate how long AZZ Incorporated takes to pay its suppliers and manage its working capital.

In summary, based on the provided data on activity ratios, AZZ Incorporated seems to have shown improvement in managing its inventory efficiently, but a lack of information on days of sales outstanding and days of payables limits a comprehensive analysis of the company's overall activity performance.

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Long-term

Long-term activity ratios provide insights into how efficiently a company is utilizing its assets to generate revenue. Two important ratios for analyzing long-term activity are Fixed Asset Turnover and Total Asset Turnover.

1. Fixed Asset Turnover:
- The Fixed Asset Turnover ratio measures how efficiently a company generates revenue from its fixed assets. A higher ratio indicates more effective utilization of fixed assets.
- For AZZ Incorporated:
- In February 2021, the Fixed Asset Turnover ratio was 4.07, indicating that the company generated $4.07 in revenue for every $1 of fixed assets.
- By February 2025, this ratio had decreased to "—", which may suggest a decline in the company's efficiency in utilizing its fixed assets.
- The trend shows a decrease in the Fixed Asset Turnover ratio over time, which could indicate potential inefficiencies in asset utilization.

2. Total Asset Turnover:
- The Total Asset Turnover ratio measures how efficiently a company generates revenue from all its assets, including both fixed and current assets.
- For AZZ Incorporated:
- In February 2021, the Total Asset Turnover ratio was 0.84, indicating that the company generated $0.84 in revenue for every $1 of total assets.
- The Total Asset Turnover ratio declined to 0.71 by February 2025, suggesting a decrease in revenue generation efficiency from total assets.
- The declining trend in the Total Asset Turnover ratio over the years implies that the company may not be effectively utilizing its assets to generate revenue.

In summary, the Fixed Asset Turnover and Total Asset Turnover ratios for AZZ Incorporated show a general trend of decreasing efficiency in asset utilization over the years. This decline may raise concerns regarding the company's ability to generate revenue effectively from its assets, particularly fixed assets, which could impact its long-term financial performance.