AZZ Incorporated (AZZ)
Financial leverage ratio
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,195,500 | 2,208,760 | 2,214,560 | 2,205,980 | 2,221,480 | 2,199,470 | 2,584,750 | 2,782,290 | 1,133,030 | 1,037,580 | 1,023,240 | 1,039,240 | 999,227 | 1,009,870 | 999,952 | 1,050,770 | 1,073,830 | 1,172,570 | 1,120,120 | 1,135,680 |
| Total stockholders’ equity | US$ in thousands | 700,769 | 921,150 | 898,077 | 871,373 | 619,738 | 852,513 | 859,621 | 687,559 | 667,365 | 648,044 | 638,426 | 637,411 | 623,292 | 624,078 | 631,541 | 635,656 | 634,366 | 653,243 | 634,606 | 619,257 |
| Financial leverage ratio | 3.13 | 2.40 | 2.47 | 2.53 | 3.58 | 2.58 | 3.01 | 4.05 | 1.70 | 1.60 | 1.60 | 1.63 | 1.60 | 1.62 | 1.58 | 1.65 | 1.69 | 1.79 | 1.77 | 1.83 |
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 fluctuated over the past few reporting periods, indicating changes in the company's capital structure and level of debt relative to equity. A higher financial leverage ratio suggests that the company is more reliant on debt to finance its operations and growth, which can potentially amplify returns but also increase financial risk.
On February 29, 2024, the financial leverage ratio stood at 3.13, significantly higher than the ratio observed in the previous quarter (2.40). This sharp increase in leverage could be attributed to an increase in debt relative to equity during the period. However, it's important to delve deeper into the components of the ratio to assess the company's financial health and sustainability of its leverage strategy.
Looking at historical trends, the financial leverage ratio has shown some variability, with a peak of 4.05 on August 31, 2022, and a low of 1.58 on August 31, 2020. This fluctuation may indicate changing business conditions, strategic decisions regarding capital structure, or shifts in the company's overall financial risk profile.
Analyzing the financial leverage ratio alongside other key financial metrics and industry benchmarks can provide a more comprehensive assessment of AZZ Incorporated's leverage position and its implications for stakeholders, including investors, creditors, and management.
Peer comparison
Feb 29, 2024