AZZ Incorporated (AZZ)
Current ratio
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 375,444 | 366,999 | 417,416 | 386,533 | 303,492 |
| Total current liabilities | US$ in thousands | 220,992 | 194,306 | 187,240 | 150,531 | 113,850 |
| Current ratio | 1.70 | 1.89 | 2.23 | 2.57 | 2.67 |
February 28, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $375,444K ÷ $220,992K
= 1.70
Based on the provided data, the current ratio of AZZ Incorporated has been declining over the past few years. The current ratio was 2.67 as of February 28, 2021, indicating that the company had $2.67 in current assets for every $1 in current liabilities. However, this ratio decreased to 2.57 by February 28, 2022, and continued to decline further to 2.23 by February 28, 2023.
The current ratio fell notably to 1.89 as of February 29, 2024, and dropped even further to 1.70 by February 28, 2025. This decreasing trend in the current ratio suggests that the company may be facing challenges in managing its short-term debt obligations with its current assets.
A current ratio below 2 may raise concerns about the company's liquidity and ability to meet its short-term obligations. It is important for investors and stakeholders to monitor this ratio closely to assess the company's financial health and liquidity position.
Peer comparison
Feb 28, 2025