AZZ Incorporated (AZZ)
Financial leverage ratio
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,227,100 | 2,244,550 | 2,240,330 | 2,235,780 | 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 | 996,442 | 1,009,870 | 999,952 | 1,050,770 |
| Total stockholders’ equity | US$ in thousands | 1,045,500 | 1,029,590 | 999,756 | 967,232 | 700,769 | 921,150 | 898,077 | 871,373 | 853,460 | 852,513 | 859,621 | 687,559 | 667,365 | 648,044 | 638,426 | 637,411 | 623,292 | 624,078 | 631,541 | 635,656 |
| Financial leverage ratio | 2.13 | 2.18 | 2.24 | 2.31 | 3.13 | 2.40 | 2.47 | 2.53 | 2.60 | 2.58 | 3.01 | 4.05 | 1.70 | 1.60 | 1.60 | 1.63 | 1.60 | 1.62 | 1.58 | 1.65 |
February 28, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,227,100K ÷ $1,045,500K
= 2.13
The financial leverage ratio of AZZ Incorporated has fluctuated over the past few years, indicating changes in the company's capital structure and level of debt financing. The ratio was relatively stable in the range of 1.58 to 1.70 from May 2020 to February 2022. However, a significant increase in the financial leverage ratio was observed starting from May 2022, reaching a peak of 4.05 in that period.
This sudden spike in the financial leverage ratio suggests that AZZ Incorporated significantly increased its debt levels or reduced its equity during this time, potentially to fund expansion, acquisitions, or other strategic initiatives. Subsequently, the ratio gradually declined but remained relatively elevated compared to the earlier period, indicating that the company continued to maintain a higher level of leverage compared to previous years.
Overall, monitoring the financial leverage ratio is crucial for assessing the company's risk profile and ability to meet its financial obligations, as high leverage levels can increase financial risk and impact the company's creditworthiness and overall stability in the long term.
Peer comparison
Feb 28, 2025