AZZ Incorporated (AZZ)
Payables 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 |
| Payables | US$ in thousands | 88,001 | 95,158 | 127,408 | 107,398 | 84,256 | 108,935 | 158,085 | 185,645 | 24,840 | 42,457 | 43,877 | 48,831 | 41,542 | 53,715 | 46,443 | 45,895 | 61,987 | 71,842 | 65,746 | 60,436 |
| Payables turnover | 23.44 | 12.23 | 9.19 | 10.94 | 12.20 | 7.77 | 4.07 | 2.33 | 18.45 | 5.22 | 6.75 | 7.34 | 8.61 | 12.93 | 16.07 | 16.84 | 13.30 | 10.99 | 11.49 | 12.38 |
February 29, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,062,736K ÷ $88,001K
= 23.44
The payables turnover ratio for AZZ Incorporated has shown fluctuations over the past few quarters. As of February 29, 2024, the payables turnover ratio stands at 23.44, indicating that the company is efficiently managing its accounts payable by paying off suppliers more frequently during the period.
Looking back at previous quarters, we observe variations in the payables turnover ratio. For instance, in May 31, 2020, the ratio was 16.84, signifying a similar trend of efficient management of payables. In contrast, there were periods, such as May 31, 2022, where the ratio dropped to 2.33, suggesting a slower rate of payments to suppliers during that period.
Overall, a higher payables turnover ratio indicates that the company is paying off its suppliers quickly, which can be beneficial in terms of maintaining good relationships and potentially negotiating better terms in the future. However, it is essential to monitor fluctuations in the ratio to ensure consistency in managing payables effectively.
Peer comparison
Feb 29, 2024