AZZ Incorporated (AZZ)
Quick ratio
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,488 | 4,349 | 2,820 | 15,082 | 14,837 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 220,992 | 194,306 | 187,240 | 150,531 | 113,850 |
| Quick ratio | 0.01 | 0.02 | 0.02 | 0.10 | 0.13 |
February 28, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,488K
+ $—K
+ $—K)
÷ $220,992K
= 0.01
The quick ratio of AZZ Incorporated has been declining over the past five years. As of February 28, 2021, the quick ratio stood at 0.13, indicating that the company had $0.13 in liquid assets available to cover each dollar of current liabilities. Subsequently, the quick ratio decreased to 0.10 by February 28, 2022, and further declined to 0.02 by both February 28, 2023, and February 29, 2024. By February 28, 2025, the quick ratio had fallen to 0.01.
This downward trend in the quick ratio suggests that AZZ Incorporated may be facing challenges in meeting its short-term financial obligations with its readily available liquid assets. A quick ratio below 1.0 typically indicates a potential liquidity risk, as the company may struggle to cover its immediate liabilities without relying on additional financing or asset sales. It is important for the company to closely monitor its liquidity position and take necessary measures to improve its ability to meet short-term obligations.
Peer comparison
Feb 28, 2025