AZZ Incorporated (AZZ)
Payables turnover
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,174,130 | 1,027,710 | 379,445 | 357,675 | 824,589 |
| Payables | US$ in thousands | 88,001 | 84,256 | 24,840 | 41,542 | 61,987 |
| Payables turnover | 13.34 | 12.20 | 15.28 | 8.61 | 13.30 |
February 29, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,174,130K ÷ $88,001K
= 13.34
The payables turnover ratio for AZZ Incorporated has shown a fluctuating trend over the past five years. In Feb 2024, the company's payables turnover ratio stood at 13.34, showing an improvement from the previous year's ratio of 12.20. This indicates that the company is managing its accounts payable more efficiently, taking less time to pay off its suppliers.
Comparing the current ratio to the ratios from previous years, we can see that the payables turnover ratio was highest in Feb 28, 2022, at 15.28, reflecting a strong ability to manage its accounts payable during that period. On the other hand, the ratio was lowest in Feb 28, 2021, at 8.61, indicating a longer period taken by the company to pay off its suppliers.
Overall, the increasing trend in the payables turnover ratio from 2021 to 2024 suggests that AZZ Incorporated has been progressively improving its efficiency in managing its accounts payable, which is a positive sign for the company's liquidity and financial health.
Peer comparison
Feb 29, 2024