AZZ Incorporated (AZZ)
Gross profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 645,875 | 343,667 | 328,600 | 332,909 | 295,943 | 270,683 | 235,174 | 170,062 | 167,936 | 177,713 | 194,815 | 204,466 | 188,747 | 194,081 | 206,737 | 213,329 | 237,228 | 229,381 | 211,805 | 206,023 |
| Revenue (ttm) | US$ in thousands | 2,708,610 | 1,507,524 | 1,499,220 | 1,507,388 | 1,323,649 | 1,117,011 | 878,793 | 603,517 | 626,209 | 673,372 | 764,912 | 836,850 | 820,317 | 888,653 | 953,169 | 985,987 | 1,061,817 | 1,019,000 | 967,377 | 953,974 |
| Gross profit margin | 23.85% | 22.80% | 21.92% | 22.09% | 22.36% | 24.23% | 26.76% | 28.18% | 26.82% | 26.39% | 25.47% | 24.43% | 23.01% | 21.84% | 21.69% | 21.64% | 22.34% | 22.51% | 21.89% | 21.60% |
February 29, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $645,875K ÷ $2,708,610K
= 23.85%
AZZ Incorporated has shown fluctuations in its gross profit margin over the past several periods. The gross profit margin represents the percentage of revenue remaining after subtracting the cost of goods sold, indicating the efficiency of the company's production processes and pricing strategies.
The trend in AZZ Incorporated's gross profit margin reveals a general decline over the periods, with some variability. The gross profit margin decreased from 23.85% in February 2024 to 21.60% in May 2019, before experiencing fluctuations and minor increases. However, the downward trend is noticeable, indicating potential challenges in controlling production costs or maintaining competitive pricing.
A company's gross profit margin is crucial for assessing its ability to generate profits from its core business activities. The declining trend in AZZ Incorporated's gross profit margin highlights the importance of closely monitoring production costs, pricing strategies, and overall operational efficiency to improve profitability and sustain long-term growth.
Peer comparison
Feb 29, 2024