AZZ Incorporated (AZZ)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,708,610 | 1,507,524 | 1,499,220 | 1,507,388 | 1,323,649 | 1,117,011 | 878,793 | 603,517 | 626,209 | 673,372 | 764,912 | 836,850 | 820,317 | 888,653 | 953,169 | 985,987 | 1,061,817 | 1,019,000 | 967,377 | 953,974 |
| Receivables | US$ in thousands | 157,845 | 173,468 | 183,951 | 170,460 | 183,412 | 173,341 | 193,647 | 255,749 | 167,016 | 144,764 | 133,430 | 134,531 | 128,127 | 127,501 | 114,295 | 130,047 | 139,214 | 174,647 | 154,460 | 159,234 |
| Receivables turnover | 17.16 | 8.69 | 8.15 | 8.84 | 7.22 | 6.44 | 4.54 | 2.36 | 3.75 | 4.65 | 5.73 | 6.22 | 6.40 | 6.97 | 8.34 | 7.58 | 7.63 | 5.83 | 6.26 | 5.99 |
February 29, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,708,610K ÷ $157,845K
= 17.16
The receivables turnover for AZZ Incorporated has shown fluctuations over the past twenty quarters. The ratio measures how efficiently the company collects on its accounts receivable during a specific period. A higher turnover ratio indicates faster collection of receivables, which is generally favorable as it implies less time for debts to be outstanding.
Looking at the trend, we can see that the receivables turnover has generally been increasing in recent quarters, with a notable peak of 17.16 in February 2024. This implies that AZZ Incorporated has been collecting its accounts receivable at a faster rate during that quarter compared to previous ones.
However, it is important to note that there have been periods of fluctuation in the receivables turnover ratio, particularly in the past where the ratio exhibited more variability. This variability could indicate changes in the company's credit policies, customer payment behavior, or economic conditions affecting the collection process.
Overall, a rising trend in the receivables turnover ratio suggests improved efficiency in collecting receivables, which can positively impact cash flow and working capital management for AZZ Incorporated. It would be beneficial for the company to continue monitoring this ratio and implementing strategies to maintain or enhance its collection efficiency.
Peer comparison
Feb 29, 2024