AZZ Incorporated (AZZ)
Return on total capital
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 251,965 | 237,168 | 177,475 | 79,394 | 60,645 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,045,500 | 934,491 | 853,460 | 667,365 | 623,292 |
| Return on total capital | 24.10% | 25.38% | 20.79% | 11.90% | 9.73% |
February 28, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $251,965K ÷ ($—K + $1,045,500K)
= 24.10%
The return on total capital of AZZ Incorporated has shown a positive trend over the past five years, starting at 9.73% on February 28, 2021, and steadily increasing to 24.10% on February 28, 2025. This indicates that the company has been able to generate higher returns on the total capital employed in its operations. The significant improvement in return on total capital from 2021 to 2025 suggests that AZZ Incorporated has been efficiently utilizing its capital to generate profits. The consistent growth in this ratio reflects positively on the company's operational efficiency and financial performance, indicating a strong ability to generate returns for its investors.
Peer comparison
Feb 28, 2025