AZZ Incorporated (AZZ)
Profitability ratios
Return on sales
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 23.64% | 22.36% | 27.81% | 25.57% | 22.34% |
| Operating profit margin | 14.41% | 13.12% | 15.07% | 9.88% | 7.47% |
| Pretax margin | 8.46% | -2.31% | 20.40% | 10.58% | 6.11% |
| Net profit margin | 6.61% | -4.00% | 15.99% | 8.24% | 4.54% |
The gross profit margin of AZZ Incorporated has been relatively stable over the past five years, ranging from 22.34% in 2020 to 27.81% in 2022. This indicates that the company has been effectively managing its production costs and pricing strategies to maintain a consistent level of profitability before considering operating expenses.
The operating profit margin has shown an increasing trend, reaching 14.41% in 2024 compared to 7.47% in 2020. This suggests that AZZ Incorporated has been improving its operational efficiency and cost control measures, leading to a higher proportion of revenues translating into operating profits.
The pretax margin reflects the company's ability to generate profits before accounting for taxes. After experiencing a negative pretax margin of -2.31% in 2023, AZZ Incorporated significantly improved its performance, achieving a pretax margin of 8.46% in 2024. This positive trend indicates better cost management and revenue generation strategies.
The net profit margin, which represents the proportion of revenues that translate into net income, has also shown improvement over the years. Despite a negative net profit margin of -4.00% in 2023, the company managed to reach a net profit margin of 6.61% in 2024. This indicates that AZZ Incorporated has been successful in controlling expenses and enhancing profitability.
Overall, the profitability ratios of AZZ Incorporated demonstrate a positive trend, indicating efficient cost management, improved operational performance, and enhanced profitability across the years.
Return on investment
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.09% | 7.82% | 6.99% | 4.75% | 7.39% |
| Return on assets (ROA) | 4.63% | -2.38% | 7.42% | 3.96% | 4.49% |
| Return on total capital | 14.34% | 3.47% | 12.71% | 7.52% | 11.00% |
| Return on equity (ROE) | 14.50% | -8.55% | 12.59% | 6.36% | 7.60% |
AZZ Incorporated's profitability ratios have shown fluctuation over the past five years.
1. Operating Return on Assets (Operating ROA): The Operating ROA has been on an upward trend, increasing from 7.39% in 2020 to 10.09% in 2024. This indicates that the company has been able to generate more operating income from its assets over time.
2. Return on Assets (ROA): The ROA has varied significantly, ranging from a negative return in 2023 to a high of 7.42% in 2022. In 2024, ROA stands at 4.63%, showing a moderate level of profitability in relation to its total assets.
3. Return on Total Capital: The Return on Total Capital has also been volatile, with a significant increase from 3.47% in 2023 to 14.34% in 2024. This ratio indicates how efficiently the company is utilizing its capital to generate profits.
4. Return on Equity (ROE): The ROE has shown improvement over the years, reaching 14.50% in 2024. Despite fluctuation, the company has been able to increase returns to shareholders, with a significant rebound from a negative ROE in 2023.
In conclusion, AZZ Incorporated has exhibited improving profitability ratios in recent years, reflecting better operational efficiency and profitability. However, the company needs to sustain this positive trend to ensure consistent and stable returns for its investors.