AZZ Incorporated (AZZ)
Current ratio
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 366,999 | 417,416 | 386,533 | 305,055 | 354,562 |
| Total current liabilities | US$ in thousands | 194,306 | 187,240 | 150,531 | 116,633 | 280,613 |
| Current ratio | 1.89 | 2.23 | 2.57 | 2.62 | 1.26 |
February 29, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $366,999K ÷ $194,306K
= 1.89
The current ratio of AZZ Incorporated has exhibited a declining trend over the past five years, decreasing from 2.62 in February 2021 to 1.89 in February 2024. This indicates a reduction in the company's ability to meet its short-term obligations with its current assets.
While the current ratio of 1.89 as of February 29, 2024, is above 1, suggesting that the company still has more current assets than current liabilities, it has experienced a significant decline compared to the previous years. A current ratio of less than 2 may raise concerns about the company's liquidity position and its ability to cover short-term obligations comfortably.
It is essential for stakeholders to monitor the current ratio closely to assess the company's liquidity and short-term financial health, as a declining trend in this ratio could potentially indicate difficulties in meeting immediate financial obligations.
Peer comparison
Feb 29, 2024