AZZ Incorporated (AZZ)

Operating profit margin

Feb 29, 2024 Feb 28, 2023 Feb 28, 2022 Feb 28, 2021 Feb 29, 2020
Operating income US$ in thousands 221,600 173,638 79,219 47,477 79,343
Revenue US$ in thousands 1,537,590 1,323,650 525,598 480,574 1,061,820
Operating profit margin 14.41% 13.12% 15.07% 9.88% 7.47%

February 29, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $221,600K ÷ $1,537,590K
= 14.41%

Over the past five years, AZZ Incorporated has shown fluctuations in its operating profit margin. The operating profit margin measures the efficiency of the company in generating profits from its core operations.

In the most recent fiscal year ending February 29, 2024, AZZ Incorporated achieved an operating profit margin of 14.41%. This represents an improvement from the prior year, where the operating profit margin was 13.12%. The increase in the operating profit margin indicates that the company was able to control its operating expenses more effectively or generate higher revenues compared to the previous year.

Looking back at the trend, there was a significant increase in the operating profit margin in the fiscal year ending February 28, 2022, with a margin of 15.07%. This suggests that during that period, AZZ Incorporated was able to achieve higher profits relative to its operating costs.

In contrast, the operating profit margin for the fiscal years ending February 28, 2021, and February 29, 2020, was 9.88% and 7.47% respectively, indicating lower profitability relative to operating expenses. It's important for the company to assess the factors contributing to these lower margins and work on strategies to improve efficiency and profitability in the future.

Overall, the fluctuation in AZZ Incorporated's operating profit margin over the years highlights the company's ability to manage its costs and generate profits from its core business activities. Continuing to focus on operational efficiency and revenue growth will be crucial for sustaining and improving profitability in the future.


Peer comparison

Feb 29, 2024

Company name
Symbol
Operating profit margin
AZZ Incorporated
AZZ
14.41%
Acuity Brands Inc
AYI
12.10%