AZZ Incorporated (AZZ)
Cash ratio
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 4,349 | 2,820 | 12,082 | 14,837 | 36,687 |
| Short-term investments | US$ in thousands | — | — | 3,000 | — | — |
| Total current liabilities | US$ in thousands | 194,306 | 187,240 | 150,531 | 116,633 | 280,613 |
| Cash ratio | 0.02 | 0.02 | 0.10 | 0.13 | 0.13 |
February 29, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($4,349K
+ $—K)
÷ $194,306K
= 0.02
The cash ratio of AZZ Incorporated has shown a declining trend over the past five years, decreasing from 0.13 in both 2020 and 2021 to 0.02 in 2022, 2023, and 2024. This indicates that the company's ability to cover its short-term liabilities with its available cash and cash equivalents has weakened significantly. A cash ratio of 0.02 implies that for every dollar of current liabilities, the company only has 2 cents in cash, highlighting potential liquidity challenges. This downward trend may raise concerns about AZZ Incorporated's liquidity management and ability to meet its short-term financial obligations with readily available funds.
Peer comparison
Feb 29, 2024