AZZ Incorporated (AZZ)
Working capital 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 |
| Total current assets | US$ in thousands | 366,999 | 392,728 | 409,869 | 408,489 | 417,416 | 406,634 | 658,440 | 720,396 | 386,533 | 349,535 | 329,039 | 334,908 | 305,055 | 324,710 | 310,933 | 335,029 | 354,562 | 414,621 | 380,041 | 396,945 |
| Total current liabilities | US$ in thousands | 194,306 | 200,000 | 206,317 | 180,107 | 187,240 | 220,755 | 350,260 | 334,413 | 150,531 | 118,657 | 118,991 | 131,194 | 116,633 | 123,455 | 240,836 | 239,617 | 280,613 | 182,373 | 149,248 | 138,766 |
| Working capital turnover | 15.68 | 7.82 | 7.37 | 6.60 | 5.75 | 6.01 | 2.85 | 1.56 | 2.65 | 2.92 | 3.64 | 4.11 | 4.35 | 4.42 | 13.60 | 10.33 | 14.36 | 4.39 | 4.19 | 3.70 |
February 29, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,708,610K ÷ ($366,999K – $194,306K)
= 15.68
The working capital turnover ratio for AZZ Incorporated has shown fluctuations over the past few periods, varying between 1.56 and 15.68. A higher working capital turnover ratio indicates that the company is efficiently using its working capital to generate sales revenue.
The trend in the working capital turnover ratio shows an improvement from the lower values in the earlier periods to the higher values in the most recent periods. This indicates that the company has become more efficient in managing its working capital resources to support its sales activities.
It is important to note that a very high working capital turnover ratio may indicate that the company is overly aggressive in managing its working capital, which could potentially lead to issues such as stockouts or liquidity problems. Conversely, a very low ratio may suggest inefficiency in utilizing working capital.
Overall, the increasing trend in the working capital turnover ratio for AZZ Incorporated is a positive indicator of its improving efficiency in managing working capital to support its sales operations.
Peer comparison
Feb 29, 2024