AZZ Incorporated (AZZ)
Working capital 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 |
| Total current assets | US$ in thousands | 366,999 | 417,416 | 386,533 | 305,055 | 354,562 |
| Total current liabilities | US$ in thousands | 194,306 | 187,240 | 150,531 | 116,633 | 280,613 |
| Working capital turnover | 8.90 | 5.75 | 2.23 | 2.55 | 14.36 |
February 29, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,537,590K ÷ ($366,999K – $194,306K)
= 8.90
The working capital turnover of AZZ Incorporated has shown fluctuations over the past five years. In fiscal year 2020, the company had a notably high working capital turnover of 14.36, indicating that it generated $14.36 in revenue for every dollar of working capital invested. However, in the subsequent years, the turnover ratio decreased significantly, reaching its lowest point of 2.23 in fiscal year 2022.
The working capital turnover increased in fiscal year 2023 to 5.75 and continued to improve in fiscal year 2024 to 8.90. This suggests that AZZ Incorporated has become more efficient in utilizing its working capital to generate sales revenue in recent years.
Overall, the trend of the working capital turnover indicates that the company has been able to improve its efficiency in managing its working capital and generating sales revenue, as seen from the increase in the turnover ratio in the most recent years compared to the earlier years.
Peer comparison
Feb 29, 2024