AZZ Incorporated (AZZ)
Return on equity (ROE)
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 101,607 | -52,974 | 84,022 | 39,614 | 48,234 |
| Total stockholders’ equity | US$ in thousands | 700,769 | 619,738 | 667,365 | 623,292 | 634,366 |
| ROE | 14.50% | -8.55% | 12.59% | 6.36% | 7.60% |
February 29, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $101,607K ÷ $700,769K
= 14.50%
Over the past five years, AZZ Incorporated's return on equity (ROE) has shown variability. In the most recent fiscal year ended on February 29, 2024, the company's ROE stood at 14.50%, indicating a healthy return generated from the shareholders' equity. This significant increase compared to the prior year's negative ROE of -8.55% reflects an improvement in the company's profitability and efficiency in managing its assets to generate earnings for its equity holders.
Looking back further, in the fiscal year ended February 28, 2023, AZZ Incorporated experienced a negative ROE, signifying that the company's net income was insufficient to cover its equity base, which might have raised concerns among investors and stakeholders. However, the subsequent increase in ROE to 12.59% in the fiscal year ended February 28, 2022, and further to 6.36% in the fiscal year ended February 28, 2021, indicates a positive trend in the company's ability to generate profit relative to the shareholders' equity.
Comparing these results to the fiscal year ended on February 29, 2020, where the ROE stood at 7.60%, it seems that AZZ Incorporated's recent performance has shown a stronger return relative to the equity invested by shareholders. Improving the ROE reflects positively on the company's profitability, efficiency, and possibly effective management of assets to generate earnings for shareholders over time. However, the negative ROE in 2023 serves as a reminder of the potential risks and challenges that the company may face and the importance of sustained financial performance.
Peer comparison
Feb 29, 2024