AZZ Incorporated (AZZ)

AZZ Incorporated's solvency ratios indicate a strong financial position with consistently low levels of debt relative to its assets, capital, and equity. The Debt-to-assets ratio has remained at 0.00 over the five-year period, indicating that the company has not relied heavily on debt to finance its operations or investments.

Similarly, the Debt-to-capital ratio and Debt-to-equity ratio have also maintained a consistent level of 0.00 throughout the period, reflecting AZZ Incorporated's ability to maintain a healthy balance between debt and capital/equity in its capital structure.

The Financial leverage ratio, which measures the company's reliance on debt financing relative to equity, has shown a slight increase from 1.60 in 2021 to 2.13 in 2025. While this could suggest a slight increase in leverage over time, the ratio remains relatively low, indicating that AZZ Incorporated has a conservative approach to utilizing debt in its capital structure.

Overall, based on these solvency ratios, AZZ Incorporated appears to have a solid financial foundation and is well-positioned to meet its long-term obligations and financial commitments.

---

Coverage ratios

The interest coverage ratio for AZZ Incorporated has fluctuated over the years based on the provided data. In February 2021, the interest coverage ratio was 6.29, indicating that the company generated enough operating income to cover its interest expenses 6.29 times over. This ratio improved significantly by February 2022, reaching 12.42, suggesting a stronger ability to meet interest obligations. However, there was a notable decline in the interest coverage ratio to 2.00 in February 2023, indicating a potential increase in financial risk as the company's operating income may not be sufficient to cover its interest expenses comfortably.

In the subsequent years, the interest coverage ratio remained relatively low at 2.22 in February 2024 and increased slightly to 3.10 in February 2025. These lower ratios suggest that the company may be facing challenges in generating enough operating income to cover its interest expenses, potentially signaling a need for closer monitoring of its debt levels and financial health. Overall, fluctuations in the interest coverage ratio for AZZ Incorporated highlight the importance of consistently monitoring and managing the company's ability to meet its interest obligations.