AZZ Incorporated (AZZ)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 157,845 | 173,468 | 183,951 | 170,460 | 183,412 | 173,341 | 193,647 | 255,749 | 167,016 | 144,764 | 133,430 | 134,531 | 128,127 | 127,501 | 114,295 | 130,047 | 139,214 | 174,647 | 154,460 | 159,234 |
| 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 |
| Quick ratio | 0.83 | 0.90 | 0.90 | 0.97 | 0.99 | 0.80 | 0.59 | 1.07 | 1.21 | 1.39 | 1.25 | 1.12 | 1.23 | 1.19 | 0.53 | 0.65 | 0.63 | 1.04 | 1.13 | 1.25 |
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 shown variability over the past few periods. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of less than 1 indicates that the company may have difficulty meeting its short-term liabilities.
Analyzing the trend, the quick ratio was 0.83 as of Feb 29, 2024, which is lower compared to the previous period but still above the critical threshold of 1. This suggests that the company may have a relatively lower level of quick assets available to cover its current liabilities.
Furthermore, the quick ratio has fluctuated between 0.53 and 1.39 over the past two years. The company experienced a low quick ratio of 0.53 on Aug 31, 2020, indicating potential liquidity challenges at that time. However, there has been an improvement in liquidity since then, with the quick ratio reaching its peak of 1.39 on Nov 30, 2021.
Overall, it is important for investors and stakeholders to monitor the quick ratio of AZZ Incorporated closely to assess the company's short-term liquidity position and its ability to cover immediate financial obligations.
Peer comparison
Feb 29, 2024