AZZ Incorporated (AZZ)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 700,769 | 619,738 | 667,365 | 623,292 | 634,366 |
| Debt-to-capital ratio | 0.58 | 0.63 | 0.25 | 0.22 | 0.11 |
February 29, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $952,742K ÷ ($952,742K + $700,769K)
= 0.58
The debt-to-capital ratio of AZZ Incorporated has exhibited fluctuations over the past five years. The ratio has increased from 0.11 in February 2020 to 0.58 in February 2024. This indicates a higher reliance on debt in the company's capital structure over the years.
In February 2022, the debt-to-capital ratio was 0.25, which was lower than the ratios observed in the subsequent years. This suggests that the company had a lower level of debt relative to its total capital at that point in time.
The upward trend in the debt-to-capital ratio from 2020 to 2024 may indicate that AZZ Incorporated has been utilizing more debt to fund its operations or growth initiatives. It is important for stakeholders to monitor this trend as higher debt levels can increase financial risk and impact the company's financial stability in the long term. Monitoring the company's ability to manage its debt obligations will be crucial for assessing its overall financial health and sustainability.
Peer comparison
Feb 29, 2024