AZZ Incorporated (AZZ)
Inventory turnover
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,195,064 | 1,207,429 | 1,195,009 | 1,190,812 | 1,174,128 | 1,163,857 | 1,170,620 | 1,174,479 | 1,110,567 | 1,004,753 | 879,307 | 735,484 | 677,441 | 657,863 | 655,038 | 650,984 | 650,170 | 694,572 | 746,432 | 772,658 |
| Inventory | US$ in thousands | 112,313 | 114,701 | 115,249 | 113,988 | 117,656 | 126,737 | 136,477 | 145,122 | 143,920 | 141,446 | 142,444 | 189,415 | 126,100 | 106,970 | 104,439 | 99,950 | 92,912 | 93,758 | 94,378 | 103,983 |
| Inventory turnover | 10.64 | 10.53 | 10.37 | 10.45 | 9.98 | 9.18 | 8.58 | 8.09 | 7.72 | 7.10 | 6.17 | 3.88 | 5.37 | 6.15 | 6.27 | 6.51 | 7.00 | 7.41 | 7.91 | 7.43 |
February 28, 2025 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,195,064K ÷ $112,313K
= 10.64
Inventory turnover is a crucial financial metric that assesses how effectively a company manages its inventory by measuring the number of times the company sells and replaces its inventory within a specific period. In the case of AZZ Incorporated, the inventory turnover has shown some fluctuations over the past few years.
From May 31, 2020, to February 28, 2022, AZZ Incorporated experienced a gradual decline in inventory turnover, dropping from 7.43 to 5.37. This may indicate slower inventory turnover, which could lead to excess or obsolete inventory levels. However, from May 31, 2022, the inventory turnover started to recover and reached 10.64 by February 28, 2025.
The recent increase in inventory turnover suggests that AZZ Incorporated has improved its inventory management efficiency, possibly by minimizing excess inventory, optimizing procurement processes, or enhancing sales strategies. A higher inventory turnover ratio generally indicates that the company is selling its products quickly and efficiently, which can lead to increased liquidity and stronger financial performance.
Overall, the trend in inventory turnover for AZZ Incorporated reflects fluctuations but shows a positive trajectory in recent periods, indicating an improvement in the company's inventory management practices and potential enhancement in overall operational efficiency. However, it's important for the company to continue monitoring and optimizing its inventory turnover ratio to ensure optimal inventory management and financial performance in the future.
Peer comparison
Feb 28, 2025
Feb 28, 2025