AZZ Incorporated (AZZ)
Quick ratio
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 4,349 | 2,820 | 12,082 | 14,837 | 36,687 |
| Short-term investments | US$ in thousands | — | — | 3,000 | — | — |
| Receivables | US$ in thousands | 157,845 | 183,412 | 167,016 | 128,127 | 139,214 |
| Total current liabilities | US$ in thousands | 194,306 | 187,240 | 150,531 | 116,633 | 280,613 |
| Quick ratio | 0.83 | 0.99 | 1.21 | 1.23 | 0.63 |
February 29, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($4,349K
+ $—K
+ $157,845K)
÷ $194,306K
= 0.83
The quick ratio of AZZ Incorporated has experienced fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
In the most recent year ending February 29, 2024, the quick ratio stands at 0.83, indicating that the company may have difficulty meeting its short-term obligations using its quick assets alone. This could raise concerns about AZZ Incorporated's liquidity position and ability to cover immediate liabilities.
Compared to the prior year, where the quick ratio was 0.99, the current ratio has decreased, which suggests a potential deterioration in the company's liquidity position. However, in the two preceding years, the quick ratio was above 1, indicating that AZZ Incorporated had a more comfortable liquidity position during those periods.
Looking back at the financial performance in 2020, the quick ratio was at a relatively low level of 0.63, indicating a higher risk of liquidity issues. In contrast, the quick ratio improved significantly in 2021 and 2022 to 1.23 and 1.21, respectively, suggesting a healthier liquidity position during those years.
It is essential for stakeholders to monitor the trend of the quick ratio over time to assess AZZ Incorporated's ability to manage its short-term financial obligations effectively. Fluctuations in the quick ratio could signal changes in the company's liquidity risk and warrant further investigation into its financial health and management of current liabilities.
Peer comparison
Feb 29, 2024