AZZ Incorporated (AZZ)
Profitability ratios
Return on sales
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 24.25% | 23.64% | 22.36% | 24.95% | 22.50% |
| Operating profit margin | 14.98% | 14.41% | 7.77% | 7.34% | 4.30% |
| Pretax margin | 10.82% | 8.46% | 6.70% | 11.78% | 6.08% |
| Net profit margin | 8.17% | 6.61% | 5.01% | 9.31% | 4.72% |
AZZ Incorporated has shown a positive trend in its profitability ratios over the past five years. The gross profit margin has improved consistently from 22.50% in February 2021 to 24.25% in February 2025, indicating efficient cost management and pricing strategies.
Similarly, the operating profit margin has also increased significantly from 4.30% in February 2021 to 14.98% in February 2025, reflecting improved operational efficiency and higher revenue generation relative to operating expenses.
The pretax margin has shown fluctuations but generally maintained an upward trajectory, reaching 10.82% in February 2025. This indicates that the company's ability to generate profits before accounting for taxes has improved over time.
Moreover, the net profit margin has also exhibited a positive trend, rising from 4.72% in February 2021 to 8.17% in February 2025. This indicates that AZZ Incorporated has been effectively managing its costs, taxes, and interest expenses to enhance its bottom line profitability.
Overall, the upward trend in all profitability ratios demonstrates the company's increasingly effective management of costs and operations, leading to sustained improvement in profitability over the years.
Return on investment
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.61% | 10.09% | 4.63% | 5.85% | 3.62% |
| Return on assets (ROA) | 5.78% | 4.63% | 2.99% | 7.42% | 3.98% |
| Return on total capital | 24.10% | 25.38% | 20.79% | 11.90% | 9.73% |
| Return on equity (ROE) | 12.32% | 10.87% | 7.77% | 12.59% | 6.36% |
AZZ Incorporated's profitability ratios show fluctuating performance over the years.
1. Operating return on assets (Operating ROA) has improved significantly from 3.62% in February 28, 2021, to 10.61% by February 28, 2025. This indicates that the company's operating efficiency in generating earnings from its assets has increased over time.
2. Return on assets (ROA) also shows an overall upward trend, with a peak of 7.42% on February 28, 2022. Despite some fluctuations, the company has shown an ability to generate profit from its total assets.
3. Return on total capital has shown a consistent improvement, reaching 24.10% on February 28, 2025, indicating that the company is effectively generating returns from both equity and debt capital.
4. Return on equity (ROE) has varied but generally improved over the years, with the highest at 12.59% on February 28, 2022. This indicates that the company is efficiently utilizing shareholder equity to generate profits for its investors.
Overall, the profitability ratios suggest that AZZ Incorporated has been successful in enhancing its operational efficiency and generating satisfactory returns for its stakeholders, albeit with some fluctuations in performance.