AZZ Incorporated (AZZ)
Total asset turnover
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,577,744 | 1,592,438 | 1,570,389 | 1,559,924 | 1,537,589 | 1,507,524 | 1,499,220 | 1,507,388 | 1,430,913 | 1,319,063 | 1,177,499 | 987,236 | 902,664 | 873,639 | 868,525 | 855,450 | 838,917 | 888,653 | 953,169 | 985,987 |
| Total assets | US$ in thousands | 2,227,100 | 2,244,550 | 2,240,330 | 2,235,780 | 2,195,500 | 2,208,760 | 2,214,560 | 2,205,980 | 2,221,480 | 2,199,470 | 2,584,750 | 2,782,290 | 1,133,030 | 1,037,580 | 1,023,240 | 1,039,240 | 996,442 | 1,009,870 | 999,952 | 1,050,770 |
| Total asset turnover | 0.71 | 0.71 | 0.70 | 0.70 | 0.70 | 0.68 | 0.68 | 0.68 | 0.64 | 0.60 | 0.46 | 0.35 | 0.80 | 0.84 | 0.85 | 0.82 | 0.84 | 0.88 | 0.95 | 0.94 |
February 28, 2025 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $1,577,744K ÷ $2,227,100K
= 0.71
The total asset turnover of AZZ Incorporated has fluctuated over the past few years. It decreased from 0.94 on May 31, 2020, to 0.82 on May 31, 2021, before stabilizing around the range of 0.80 to 0.85 until August 31, 2022. However, there was a significant drop in total asset turnover to 0.35 on May 31, 2022, followed by a gradual increase to 0.71 by November 30, 2024.
A total asset turnover ratio of less than 1 generally indicates that the company is not generating a sufficient level of sales in relation to its total assets. The decrease in this ratio over time may suggest inefficiencies in asset utilization or a decline in sales relative to the size of the asset base. On the positive side, the gradual increase in the ratio from 2022 to 2024 indicates a potentially improving efficiency in generating sales from the company's assets.
Overall, a company should aim for a balance in total asset turnover to ensure optimal utilization of assets in generating revenue. It would be important to further investigate the drivers behind the fluctuating total asset turnover to make informed decisions regarding operational efficiency and financial performance.
Peer comparison
Feb 28, 2025