AZZ Incorporated (AZZ)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 101,607 | 84,805 | 37,373 | -48,529 | -52,974 | -32,413 | 9,214 | 85,762 | 84,022 | 78,560 | 77,178 | 56,410 | 39,614 | 12,811 | 15,143 | 32,491 | 48,234 | 67,728 | 61,088 | 56,774 |
| Total stockholders’ equity | US$ in thousands | 700,769 | 921,150 | 898,077 | 871,373 | 619,738 | 852,513 | 859,621 | 687,559 | 667,365 | 648,044 | 638,426 | 637,411 | 623,292 | 624,078 | 631,541 | 635,656 | 634,366 | 653,243 | 634,606 | 619,257 |
| ROE | 14.50% | 9.21% | 4.16% | -5.57% | -8.55% | -3.80% | 1.07% | 12.47% | 12.59% | 12.12% | 12.09% | 8.85% | 6.36% | 2.05% | 2.40% | 5.11% | 7.60% | 10.37% | 9.63% | 9.17% |
February 29, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $101,607K ÷ $700,769K
= 14.50%
The return on equity (ROE) for AZZ Incorporated has shown fluctuations over the past several quarters. ROE measures the company's profitability relative to shareholders' equity and is an important indicator of how efficiently the firm is utilizing its equity capital.
In the most recent quarter, ending February 29, 2024, AZZ Incorporated reported an ROE of 14.50%, indicating a solid return on shareholders' equity. This is an improvement compared to the previous quarter's ROE of 9.21% in November 30, 2023. The upward trend in ROE suggests that the company is generating more profits from the equity invested by shareholders.
However, looking at historical data, there have been periods of lower and negative ROE. For instance, in May 31, 2023, and February 28, 2023, AZZ Incorporated reported negative ROE figures of -5.57% and -8.55%, respectively. Negative ROE implies that the company's net income was insufficient to cover the equity investment, indicating potential financial challenges or inefficiencies.
Overall, while the recent improvement in ROE is a positive sign, investors should closely monitor the company's ability to sustain and improve its ROE over time. Analyzing the factors driving the changes in ROE, such as profitability, asset management, and leverage, can provide insights into AZZ Incorporated's financial performance and future prospects.
Peer comparison
Feb 29, 2024