AZZ Incorporated (AZZ)
Return on total capital
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 237,168 | 58,162 | 113,599 | 60,323 | 78,353 |
| Long-term debt | US$ in thousands | 952,742 | 1,058,120 | 226,484 | 178,419 | 77,878 |
| Total stockholders’ equity | US$ in thousands | 700,769 | 619,738 | 667,365 | 623,292 | 634,366 |
| Return on total capital | 14.34% | 3.47% | 12.71% | 7.52% | 11.00% |
February 29, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $237,168K ÷ ($952,742K + $700,769K)
= 14.34%
The return on total capital for AZZ Incorporated has varied over the past five years. In the most recent fiscal year as of February 29, 2024, the return on total capital was 14.34%, showing a significant improvement compared to the previous year's rate of 3.47% as of February 28, 2023. This increase indicates a more effective utilization of the company's total capital in generating profits.
Looking further back, the return on total capital was 12.71% in fiscal year 2022, 7.52% in fiscal year 2021, and 11.00% in fiscal year 2020. These figures demonstrate fluctuations in the company's ability to generate returns relative to its total capital over the years, with varying levels of efficiency and profitability.
Overall, the recent improvement in return on total capital suggests that AZZ Incorporated has managed to enhance its profitability and efficiency in utilizing its total capital in the most recent fiscal period. However, it will be essential for the company to sustain or further improve upon this performance to ensure long-term financial success and value creation for its stakeholders.
Peer comparison
Feb 29, 2024