AZZ Incorporated (AZZ)
Receivables turnover
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,537,590 | 1,323,650 | 525,598 | 480,574 | 1,061,820 |
| Receivables | US$ in thousands | 157,845 | 183,412 | 167,016 | 128,127 | 139,214 |
| Receivables turnover | 9.74 | 7.22 | 3.15 | 3.75 | 7.63 |
February 29, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,537,590K ÷ $157,845K
= 9.74
The receivables turnover ratio for AZZ Incorporated has fluctuated over the past five years, reflecting the company's effectiveness in collecting payments from its customers.
From February 29, 2020, to February 28, 2021, the receivables turnover ratio decreased from 7.63 to 3.75, indicating that it took the company longer to collect payments from customers in 2021 compared to 2020.
However, there was a significant increase in the receivables turnover ratio from February 28, 2021, to February 28, 2022, where it improved to 3.15. This suggests that AZZ Incorporated managed to collect its receivables more efficiently in 2022 compared to the previous year.
Subsequently, the company experienced a substantial improvement in its receivables turnover ratio, jumping to 7.22 by February 28, 2023, indicating a faster collection of receivables compared to 2022.
Finally, the receivables turnover ratio continued on an upward trend, reaching 9.74 as of February 29, 2024, demonstrating that AZZ Incorporated was collecting payments from customers at a faster rate in 2024 compared to the prior years, showcasing an enhanced efficiency in managing its accounts receivable.
Overall, the trend in the receivables turnover ratio for AZZ Incorporated indicates fluctuations in the company's ability to efficiently collect payments from customers over the five-year period.
Peer comparison
Feb 29, 2024