AZZ Incorporated (AZZ)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Based on the provided data, AZZ Incorporated has shown strong solvency ratios over the assessed period. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio are all consistently at 0.00, indicating that the company has not utilized debt significantly to finance its operations and investments.
The Financial leverage ratio, which measures the proportion of a company's debt to its equity, shows fluctuations over time. Initially, the ratio was around 1.60-1.70, but there was a significant spike in the Financial leverage ratio in May 31, 2022, with a value of 4.05. This spike demonstrates a substantial increase in the company's debt relative to its equity. However, the ratio gradually decreased in the following periods, indicating that the company took steps to reduce its leverage and improve its financial position.
Overall, AZZ Incorporated's solvency ratios suggest a conservative approach to debt management and a commitment to maintaining a strong financial position. Despite the temporary increase in leverage in 2022, the company's subsequent actions to bring the ratio back down demonstrate a proactive approach to maintaining financial stability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Based on the provided data, AZZ Incorporated's interest coverage ratio fluctuated over the given period. The interest coverage ratio is an important financial metric that indicates a company's ability to meet its interest obligations on outstanding debt.
In May 2020, AZZ Inc. had an interest coverage ratio of 4.90, indicating that the company's operating income was 4.90 times greater than its interest expense. However, by November 2023, the interest coverage ratio had decreased to 1.97, reflecting a potential decrease in the company's ability to cover its interest payments.
Subsequently, the interest coverage ratio improved, reaching its peak at 17.63 in February 2022, suggesting a significant improvement in AZZ Inc.'s ability to service its debt. However, the ratio declined in the following quarters, dropping to 2.39 by February 2024.
Overall, the trend in AZZ Incorporated's interest coverage ratio displays fluctuations, indicating changes in the company's ability to cover its interest expenses. It is important for investors and stakeholders to closely monitor this ratio to assess the company's financial health and its ability to meet its debt obligations.