AZZ Incorporated (AZZ)
Fixed asset turnover
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,708,610 | 1,507,524 | 1,499,220 | 1,507,388 | 1,323,649 | 1,117,011 | 878,793 | 603,517 | 626,209 | 673,372 | 764,912 | 836,850 | 820,317 | 888,653 | 953,169 | 985,987 | 1,061,817 | 1,019,000 | 967,377 | 953,974 |
| Property, plant and equipment | US$ in thousands | 541,652 | 525,338 | 516,499 | 504,032 | 498,503 | 491,367 | 496,125 | 491,722 | 193,358 | 199,886 | 202,220 | 207,689 | 207,089 | 201,178 | 200,420 | 214,965 | 213,104 | 211,691 | 214,098 | 206,305 |
| Fixed asset turnover | 5.00 | 2.87 | 2.90 | 2.99 | 2.66 | 2.27 | 1.77 | 1.23 | 3.24 | 3.37 | 3.78 | 4.03 | 3.96 | 4.42 | 4.76 | 4.59 | 4.98 | 4.81 | 4.52 | 4.62 |
February 29, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,708,610K ÷ $541,652K
= 5.00
The fixed asset turnover ratio for AZZ Incorporated has shown fluctuations over the historical periods analyzed. The ratio measures the efficiency with which the company generates sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates better utilization of the company's fixed assets to generate sales.
Looking at the data provided, it can be observed that the fixed asset turnover ratio has ranged from a low of 1.23 to a high of 5.00. The ratio experienced significant variations, with fluctuations across different periods.
In the most recent period, as of February 29, 2024, the fixed asset turnover ratio stood at 5.00, indicating a substantial increase in efficiency compared to previous periods. This suggests that AZZ Incorporated was able to generate $5.00 in sales revenue for every dollar invested in fixed assets during that period.
On the contrary, there were periods, such as in August 31, 2022, where the fixed asset turnover ratio was lower at 1.77, signifying less efficiency in utilizing fixed assets to generate sales revenue.
Overall, the fluctuating trend in the fixed asset turnover ratio for AZZ Incorporated indicates varying levels of asset utilization efficiency over the historical periods, which may be influenced by changes in sales volume, asset base, or operational efficiency within the company.
Peer comparison
Feb 29, 2024