AZZ Incorporated (AZZ)
Return on equity (ROE)
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 128,833 | 101,607 | 66,339 | 84,022 | 39,614 |
| Total stockholders’ equity | US$ in thousands | 1,045,500 | 934,491 | 853,460 | 667,365 | 623,292 |
| ROE | 12.32% | 10.87% | 7.77% | 12.59% | 6.36% |
February 28, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $128,833K ÷ $1,045,500K
= 12.32%
ROE is a key financial ratio that measures a company's net income generated relative to its shareholders' equity. For AZZ Incorporated, the ROE has shown fluctuation over the past five years, beginning at 6.36% on February 28, 2021, and reaching a peak of 12.59% on February 28, 2022. However, there was a slight decrease in ROE to 7.77% on February 28, 2023, before experiencing a notable increase to 10.87% on February 29, 2024. In the most recent period ending February 28, 2025, the ROE stood at 12.32%.
These variations in ROE indicate changes in the company's ability to generate profits from the shareholders' investments over the years. It is essential to assess the reasons behind these fluctuations to understand the company's operational performance, risk management, and capital structure efficiency. A rising ROE generally signifies better profitability and efficiency, while a declining ROE may raise concerns regarding the company’s financial health and effectiveness in utilizing equity capital.
Further analysis is recommended to unpack the factors influencing AZZ Incorporated's ROE trends, such as profitability, asset management, and debt levels, to gather a comprehensive understanding of the company's financial performance and the sustainability of its returns to shareholders.
Peer comparison
Feb 28, 2025