AZZ Incorporated (AZZ)
Debt-to-equity 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-equity ratio | 1.36 | 1.71 | 0.34 | 0.29 | 0.12 |
February 29, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $952,742K ÷ $700,769K
= 1.36
The debt-to-equity ratio of AZZ Incorporated has varied over the past five years, indicating changes in the company's capital structure and financial leverage.
In the most recent fiscal year ending on February 29, 2024, the debt-to-equity ratio stood at 1.36, reflecting a moderate level of debt relative to equity. This ratio has decreased from the prior fiscal year, where it was at 1.71, suggesting a reduction in financial leverage.
Comparing these recent values to the ratios from the previous years reveals a significant fluctuation. In the fiscal year ending February 28, 2022, the company had a relatively low debt-to-equity ratio of 0.34, signifying a conservative debt structure. This ratio further decreased to 0.29 in the following year, indicating a continued preference for equity financing over debt financing.
The most noticeable change occurred within the past two years, as the debt-to-equity ratio rose sharply from 0.12 in the fiscal year ending on February 29, 2020, to 1.71 in the fiscal year ending on February 28, 2023. This substantial increase suggests that AZZ Incorporated significantly increased its debt levels or decreased its equity during that period.
Overall, the fluctuation in the debt-to-equity ratio of AZZ Incorporated over the past five years indicates varying levels of financial risk and capital structure strategies employed by the company.
Peer comparison
Feb 29, 2024