AZZ Incorporated (AZZ)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 251,965 | 254,954 | 251,539 | 263,158 | 256,259 | 248,007 | 233,491 | 216,417 | 188,651 | 176,977 | 158,647 | 120,171 | 112,740 | 104,598 | 104,514 | 79,464 | 60,645 | 34,128 | 39,704 | 61,351 |
| Interest expense (ttm) | US$ in thousands | 81,282 | 88,640 | 95,272 | 101,133 | 107,065 | 109,392 | 109,660 | 110,034 | 88,801 | 63,054 | 38,561 | 12,171 | 6,395 | 7,353 | 7,995 | 8,711 | 9,648 | 10,406 | 11,435 | 12,513 |
| Interest coverage | 3.10 | 2.88 | 2.64 | 2.60 | 2.39 | 2.27 | 2.13 | 1.97 | 2.12 | 2.81 | 4.11 | 9.87 | 17.63 | 14.23 | 13.07 | 9.12 | 6.29 | 3.28 | 3.47 | 4.90 |
February 28, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $251,965K ÷ $81,282K
= 3.10
The interest coverage ratio for AZZ Incorporated has shown fluctuations over the past few years based on the provided data. The interest coverage ratio measures the company's ability to meet interest obligations on its outstanding debt. A higher ratio indicates that the company is more capable of meeting its interest payments.
As of February 28, 2025, AZZ Incorporated's interest coverage ratio stands at 3.10. This suggests that the company generated 3.10 times the amount of operating income needed to cover its interest expense. The ratio has gradually increased from a low of 1.97 on May 31, 2023, indicating an improvement in the company's ability to meet its interest obligations.
It's worth noting that the interest coverage ratio peaked at 17.63 on February 28, 2022, indicating a significant improvement in the company's financial health at that time. However, the ratio has trended downwards since then, with some fluctuations, dropping to 2.64 on August 31, 2024, before climbing back to 3.10 as of February 28, 2025.
Overall, the trend in AZZ Incorporated's interest coverage ratio suggests that the company has generally been able to meet its interest payments, with some variability over time. Investors and creditors may monitor this ratio closely to assess the company's ability to manage its debt and financial obligations effectively.
Peer comparison
Feb 28, 2025