AZZ Incorporated (AZZ)
Debt-to-assets ratio
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 952,742 | 1,058,120 | 226,484 | 178,419 | 77,878 |
| Total assets | US$ in thousands | 2,195,500 | 2,221,480 | 1,133,030 | 999,227 | 1,073,830 |
| Debt-to-assets ratio | 0.43 | 0.48 | 0.20 | 0.18 | 0.07 |
February 29, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $952,742K ÷ $2,195,500K
= 0.43
The debt-to-assets ratio of AZZ Incorporated has shown a fluctuating trend over the past five years. It increased from 0.07 in 2020 to 0.18 in 2021, reflecting a higher proportion of debt relative to total assets. However, in the subsequent years, the ratio experienced a significant rise to 0.20 in 2022 and further to 0.48 in 2023, indicating a substantial increase in debt compared to the company's total assets.
In the most recent year, the debt-to-assets ratio decreased to 0.43 in 2024, which may imply a reduction in the reliance on debt financing or an increase in total assets. This ratio suggests that AZZ Incorporated has been leveraging its assets through debt financing, with varying degrees of reliance on debt over the years.
The upward trend in the debt-to-assets ratio from 2020 to 2023 could indicate a higher financial risk for the company, as a larger portion of its assets is financed through debt. It is essential for stakeholders to monitor this ratio closely to assess AZZ Incorporated's debt management and financial stability.
Peer comparison
Feb 29, 2024