AZZ Incorporated (AZZ)
Working capital turnover
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,577,740 | 1,537,590 | 1,323,650 | 902,664 | 838,917 |
| Total current assets | US$ in thousands | 375,444 | 366,999 | 417,416 | 386,533 | 303,492 |
| Total current liabilities | US$ in thousands | 220,992 | 194,306 | 187,240 | 150,531 | 113,850 |
| Working capital turnover | 10.22 | 8.90 | 5.75 | 3.82 | 4.42 |
February 28, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,577,740K ÷ ($375,444K – $220,992K)
= 10.22
The working capital turnover of AZZ Incorporated has shown a generally increasing trend over the past five years. From February 28, 2021, to February 28, 2025, the working capital turnover ratios have improved significantly from 4.42 to 10.22.
This suggests that the company is managing its working capital more efficiently over the years. A higher working capital turnover ratio indicates that the company is generating more revenue from its working capital, which can be seen as a positive sign of operational efficiency and effective resource utilization.
The significant increase in the working capital turnover ratio from 2021 to 2025 indicates that AZZ Incorporated has been able to optimize its working capital management, potentially by reducing excess inventory levels, improving accounts receivable collection, and managing accounts payable effectively. This improvement in working capital turnover demonstrates the company's ability to generate sales revenue relative to its invested working capital, which is a key metric for assessing operational effectiveness and financial health.
Peer comparison
Feb 28, 2025