AZZ Incorporated (AZZ)
Return on total capital
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 251,965 | 254,954 | 251,539 | 263,158 | 256,259 | 248,007 | 233,491 | 216,417 | 188,651 | 176,977 | 158,647 | 120,171 | 112,740 | 104,598 | 104,514 | 79,464 | 60,645 | 34,128 | 39,704 | 61,351 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,045,500 | 1,029,590 | 999,756 | 967,232 | 700,769 | 921,150 | 898,077 | 871,373 | 853,460 | 852,513 | 859,621 | 687,559 | 667,365 | 648,044 | 638,426 | 637,411 | 623,292 | 624,078 | 631,541 | 635,656 |
| Return on total capital | 24.10% | 24.76% | 25.16% | 27.21% | 36.57% | 26.92% | 26.00% | 24.84% | 22.10% | 20.76% | 18.46% | 17.48% | 16.89% | 16.14% | 16.37% | 12.47% | 9.73% | 5.47% | 6.29% | 9.65% |
February 28, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (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 fluctuating trend over the reporting periods. It started at 9.65% on May 31, 2020, decreased to 5.47% by November 30, 2020, and then increased to 26.92% by November 30, 2023. The return on total capital saw a significant spike to 36.57% on February 29, 2024, followed by a decrease to 24.10% by February 28, 2025.
Overall, the return on total capital has demonstrated considerable variability, reflecting changes in the company's efficiency in utilizing its total capital to generate profits. The sustained increase in the return on total capital in recent periods indicates improving profitability and effective capital utilization by AZZ Incorporated. Monitoring this ratio will be crucial for evaluating the company's long-term financial performance and sustainability.
Peer comparison
Feb 28, 2025