AZZ Incorporated (AZZ)
Financial leverage ratio
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,195,500 | 2,221,480 | 1,133,030 | 999,227 | 1,073,830 |
| Total stockholders’ equity | US$ in thousands | 700,769 | 619,738 | 667,365 | 623,292 | 634,366 |
| Financial leverage ratio | 3.13 | 3.58 | 1.70 | 1.60 | 1.69 |
February 29, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,195,500K ÷ $700,769K
= 3.13
The financial leverage ratio of AZZ Incorporated has exhibited fluctuations over the past five years. The ratio increased from 1.60 in February 2021 to 3.58 in February 2023, indicating a significant rise in leverage during that period. However, there was a notable decrease in the ratio to 1.70 in February 2022. Subsequently, the ratio climbed again to 3.13 by February 2024.
The trend in the financial leverage ratio suggests that AZZ Incorporated has experienced varying levels of financial leverage in recent years. A higher leverage ratio signifies a greater reliance on debt to finance its operations and investments, which can potentially magnify returns but also increase financial risk. Conversely, a lower leverage ratio indicates a more conservative capital structure with less debt financing.
Overall, the fluctuating pattern of AZZ Incorporated's financial leverage ratio indicates changes in its capital structure and financing strategies over the analyzed period. Further analysis and comparison with industry benchmarks may provide insights into the company's risk profile and financial health.
Peer comparison
Feb 29, 2024