AZZ Incorporated (AZZ)

Short-term

Turnover ratios

Based on the provided data for AZZ Incorporated, let's analyze the activity ratios:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently the company manages its inventory. A higher ratio indicates inventory is selling quickly.
- AZZ's inventory turnover has shown a fluctuating trend over the periods, starting at 7.43 in May 2020 and reaching a peak of 10.64 in February 2025.
- Despite some variability, the general trend shows that the company's inventory turnover has been gradually increasing, which is a positive sign of effective inventory management.

2. Receivables Turnover:
- The receivables turnover ratio reflects how quickly the company collects its accounts receivables. Unfortunately, specific data for this ratio is not provided.
- Without this information, it's challenging to evaluate the effectiveness of AZZ's accounts receivable management.

3. Payables Turnover:
- The payables turnover ratio measures how quickly the company pays its suppliers. Similar to receivables turnover, data for this ratio is unavailable.
- Without this information, it's difficult to assess how efficiently AZZ manages its payables.

4. Working Capital Turnover:
- The working capital turnover ratio evaluates how efficiently the company utilizes its working capital to generate sales.
- AZZ's working capital turnover ratio has shown fluctuations over time, starting at 10.33 in May 2020 and reaching 10.22 in February 2025.
- The decreasing trend observed in recent periods may indicate a less efficient utilization of working capital compared to earlier periods.

In conclusion, while inventory turnover has generally improved for AZZ Incorporated, the lack of data for receivables and payables turnover ratios limits a comprehensive analysis of the company's overall activity efficiency. The working capital turnover trend suggests a need for further evaluation to understand the company's working capital management strategies in greater detail.

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Average number of days

To analyze the activity ratios of AZZ Incorporated based on the provided data:

1. Days of Inventory on Hand (DOH):
- The days of inventory on hand represent the number of days it takes for a company to sell its entire inventory.
- The trend in DOH for AZZ Incorporated shows fluctuations over the years, ranging from 34.30 days to 94.00 days.
- A decreasing trend in DOH from February 2023 to February 2025 indicates an improvement in inventory management efficiency.

2. Days of Sales Outstanding (DSO):
- DSO measures the average number of days a company takes to collect revenue after a sale.
- The data does not provide specific information on DSO, as all values are indicated as "— days," suggesting a lack of visibility into the company's accounts receivable turnover.

3. Number of Days of Payables:
- Unfortunately, the data does not include information on the number of days of payables, making it challenging to assess the company's payment practices and liquidity management related to accounts payable.

In conclusion, based on the available data, it can be inferred that AZZ Incorporated has shown some improvement in inventory management efficiency, as evidenced by the decreasing trend in Days of Inventory on Hand over the years. However, the lack of information on Days of Sales Outstanding and Number of Days of Payables limits a comprehensive evaluation of the company's overall activity ratios and working capital management.

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Long-term

Based on the provided data for AZZ Incorporated, we can observe the following trends in the long-term activity ratios:

1. Fixed Asset Turnover: The fixed asset turnover ratio measures how efficiently the company is utilizing its fixed assets to generate revenue. The ratio has shown a general decline over the reporting periods, from a high of 4.76 in August 2020 to a low of 2.01 in May 2022. This indicates a decrease in the efficiency of utilizing fixed assets to generate sales during this period. Although there has been a slight recovery in the ratio in the subsequent periods, it remains lower compared to the initial periods.

2. Total Asset Turnover: The total asset turnover ratio reflects the company's ability to generate sales relative to its total assets. The ratio has shown a fluctuating trend, with a decline from 0.95 in August 2020 to a low of 0.35 in May 2022, indicating a reduction in the company's ability to generate sales using its total assets. However, there has been an improvement in the ratio in the later reporting periods, showing a recovery in the efficiency of asset utilization to generate sales.

Overall, the analysis of long-term activity ratios for AZZ Incorporated indicates fluctuations in asset turnover efficiency over the reporting periods. It is important for the company to closely monitor and potentially enhance its asset utilization strategies to improve operational efficiency and profitability in the long run.