AZZ Incorporated (AZZ)
Working capital 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 current assets | US$ in thousands | 375,444 | 394,405 | 401,156 | 396,342 | 366,999 | 392,728 | 409,869 | 408,489 | 417,416 | 406,634 | 658,440 | 720,396 | 386,533 | 349,535 | 329,039 | 334,908 | 303,492 | 324,710 | 310,933 | 335,029 |
| Total current liabilities | US$ in thousands | 220,992 | 222,292 | 217,130 | 223,865 | 194,306 | 200,000 | 206,317 | 180,107 | 187,240 | 220,755 | 350,260 | 334,413 | 150,531 | 118,657 | 118,991 | 131,194 | 113,850 | 123,455 | 240,836 | 239,617 |
| Working capital turnover | 10.22 | 9.25 | 8.53 | 9.04 | 8.90 | 7.82 | 7.37 | 6.60 | 6.22 | 7.10 | 3.82 | 2.56 | 3.82 | 3.78 | 4.13 | 4.20 | 4.42 | 4.42 | 13.60 | 10.33 |
February 28, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,577,744K ÷ ($375,444K – $220,992K)
= 10.22
Working capital turnover is a financial ratio that measures how efficiently a company is using its working capital to generate sales revenue. A higher working capital turnover indicates that the company is efficiently managing its working capital.
Analyzing the working capital turnover of AZZ Incorporated over the years shows fluctuations in the ratio. The working capital turnover for the company ranged from a high of 13.60 in August 31, 2020, to a low of 2.56 in May 31, 2022. This indicates varying levels of efficiency in utilizing working capital to generate sales during different periods.
The trend in the working capital turnover over the years shows a general decrease from the peak in August 31, 2020, to a low in May 31, 2022, before gradually increasing again. This could suggest changes in the company's working capital management practices or changes in its sales revenue generation effectiveness.
Furthermore, a detailed analysis of the changes in working capital turnover can provide insights into the company's operational efficiency, liquidity management, and overall financial health. Evaluating the reasons behind the fluctuations in working capital turnover can help stakeholders understand the company's performance and make informed decisions.
Peer comparison
Feb 28, 2025