AZZ Incorporated (AZZ)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 4,349 | 7,509 | 2,108 | 3,878 | 2,820 | 3,290 | 11,340 | 100,998 | 12,082 | 20,355 | 15,488 | 12,403 | 14,837 | 19,195 | 14,028 | 26,414 | 36,687 | 14,289 | 13,583 | 13,586 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | 3,000 | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.02 | 0.04 | 0.01 | 0.02 | 0.02 | 0.01 | 0.03 | 0.30 | 0.10 | 0.17 | 0.13 | 0.09 | 0.13 | 0.16 | 0.06 | 0.11 | 0.13 | 0.08 | 0.09 | 0.10 |
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 fluctuated over the past few years, ranging from as low as 0.01 to as high as 0.30. The cash ratio measures the company's ability to cover its current liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of funding.
In analyzing the trend, we see that the cash ratio was relatively stable around 0.10 to 0.20 from May 2019 to May 2020, with a significant spike to 0.30 in August 2020. This sudden increase could be a result of a higher cash balance or a decrease in current liabilities during that period. However, the cash ratio dropped sharply in the subsequent quarters, hovering between 0.01 to 0.06 from August 2020 to August 2022.
The cash ratio rebounded to 0.10 in November 2022 before reaching 0.04 in November 2023. The latest data point of 0.02 as of February 2024 indicates that the company has limited cash available relative to its current liabilities. It may suggest a need for AZZ Incorporated to carefully manage its cash position and ensure it has sufficient liquidity to meet its short-term obligations going forward.
Peer comparison
Feb 29, 2024