AZZ Incorporated (AZZ)
Fixed asset turnover
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,537,590 | 1,323,650 | 525,598 | 480,574 | 1,061,820 |
| Property, plant and equipment | US$ in thousands | 541,652 | 498,503 | 193,358 | 207,089 | 213,104 |
| Fixed asset turnover | 2.84 | 2.66 | 2.72 | 2.32 | 4.98 |
February 29, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,537,590K ÷ $541,652K
= 2.84
The fixed asset turnover ratio for AZZ Incorporated has shown a fluctuating trend over the past five years, ranging from 2.32 to 4.98. This ratio measures how efficiently the company is utilizing its fixed assets to generate revenue. A higher ratio indicates better efficiency in generating sales relative to the value of fixed assets.
In this case, the ratio was at its peak in 2020 at 4.98, reflecting a significant increase in sales generated per dollar of fixed assets compared to the other years. However, in the subsequent years, the ratio decreased but remained above 2, indicating relatively efficient utilization of fixed assets to drive sales.
Overall, despite some fluctuations, the company has maintained a healthy fixed asset turnover ratio, showcasing a consistent ability to generate revenue from its fixed assets over the years.
Peer comparison
Feb 29, 2024