AZZ Incorporated (AZZ)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 34.30 | 34.67 | 35.20 | 34.94 | 36.58 | 39.75 | 42.55 | 45.10 | 47.30 | 51.38 | 59.13 | 94.00 | 67.94 | 59.35 | 58.20 | 56.04 | 52.16 | 49.27 | 46.15 | 49.12 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 34.30 | 34.67 | 35.20 | 34.94 | 36.58 | 39.75 | 42.55 | 45.10 | 47.30 | 51.38 | 59.13 | 94.00 | 67.94 | 59.35 | 58.20 | 56.04 | 52.16 | 49.27 | 46.15 | 49.12 |
February 28, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 34.30 + — – —
= 34.30
The cash conversion cycle of AZZ Incorporated has shown fluctuations over the past few years. Starting at 49.12 days on May 31, 2020, the cycle decreased to 46.15 days by August 31, 2020. However, it then increased slightly to 49.27 days by November 30, 2020. The cycle continued to rise, reaching 52.16 days on February 28, 2021, and further increased to 56.04 days by May 31, 2021.
The trend of increasing cash conversion cycle continued as it reached 58.20 days on August 31, 2021, and peaked at 67.94 days on February 28, 2022. This significant increase was then followed by a notable decrease to 42.55 days by August 31, 2023, representing a substantial improvement in the cycle efficiency.
As of the latest data available, the cash conversion cycle stood at 34.30 days on February 28, 2025, indicating a continued effort by AZZ Incorporated to manage its working capital efficiently. The decreasing trend in the cash conversion cycle suggests that the company has been able to streamline its operations, manage its inventory levels, and collect receivables more effectively in recent periods.
Peer comparison
Feb 28, 2025