AZZ Incorporated (AZZ)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,062,736 | 1,163,857 | 1,170,620 | 1,174,479 | 1,027,706 | 846,328 | 643,619 | 433,455 | 458,273 | 221,764 | 296,202 | 358,489 | 357,675 | 694,572 | 746,432 | 772,658 | 824,589 | 789,619 | 755,572 | 747,951 |
| Inventory | US$ in thousands | 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 | 99,841 | 119,438 | 110,314 | 118,222 |
| Inventory turnover | 17.53 | 9.18 | 8.58 | 8.09 | 7.14 | 5.98 | 4.52 | 2.29 | 3.63 | 2.07 | 2.84 | 3.59 | 3.85 | 7.41 | 7.91 | 7.43 | 8.26 | 6.61 | 6.85 | 6.33 |
February 29, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,062,736K ÷ $117,656K
= 17.53
The inventory turnover for AZZ Incorporated has shown fluctuations over the past several periods. A higher inventory turnover indicates that the company is selling its inventory at a faster rate. In this case, the inventory turnover has generally been increasing over the referenced period from 6.33 at the end of May 2019 to 17.53 at the end of February 2024. This upward trend suggests that AZZ Incorporated has been more efficient in managing its inventory levels and converting them into sales.
The spikes and dips in the inventory turnover ratio could be due to seasonal factors, changes in demand, inventory management practices, or other operational efficiencies. Additionally, a high inventory turnover ratio may indicate that the company is effectively managing its inventory levels, reducing carrying costs, and avoiding obsolete stock.
It is essential for AZZ Incorporated to monitor and analyze its inventory turnover ratio continuously to ensure efficient inventory management and optimize its operations. By understanding and interpreting the trends in the inventory turnover ratio, the company can make informed decisions regarding inventory levels, production planning, and overall financial performance.
Peer comparison
Feb 29, 2024
Feb 29, 2024