AZZ (AZZ) Inventory-to-Revenue : 0.33 (As of Feb. 2024)

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What is AZZ Inventory-to-Revenue?

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. AZZ's Average Total Inventories for the quarter that ended in Feb. 2024 was $122 Mil. AZZ's Revenue for the three months ended in Feb. 2024 was $367 Mil. AZZ's Inventory-to-Revenue for the quarter that ended in Feb. 2024 was 0.33.

AZZ's Inventory-to-Revenue for the quarter that ended in Feb. 2024 declined from Nov. 2023 (0.35) to Nov. 2023 (0.33)

A decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:

1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the Inventory-to-Revenue, either one suggests that business's inventory levels and its cash flow are effectively managed.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. AZZ's Days Inventory for the three months ended in Feb. 2024 was 39.05.

Inventory Turnover measures how fast the company turns over its inventory within a year. AZZ's Inventory Turnover for the quarter that ended in Feb. 2024 was 2.34.

AZZ Inventory-to-Revenue Historical Data

The historical data trend for AZZ's Inventory-to-Revenue can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

AZZ Inventory-to-Revenue Chart

AZZ Annual Data

Trend

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Feb24

Inventory-to-Revenue

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0.11

0.20

0.17

0.09

AZZ Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
Inventory-to-Revenue	Get a 7-Day Free Trial															0.42	0.37	0.35	0.35	0.33

Competitive Comparison of AZZ's Inventory-to-Revenue

For the Specialty Business Services subindustry, AZZ's Inventory-to-Revenue, along with its competitors' market caps and Inventory-to-Revenue data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

AZZ's Inventory-to-Revenue Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, AZZ's Inventory-to-Revenue distribution charts can be found below:

* The bar in red indicates where AZZ's Inventory-to-Revenue falls into.

AZZ Inventory-to-Revenue Calculation

AZZ's Inventory-to-Revenue for the fiscal year that ended in Feb. 2024 is calculated as

	Inventory-to-Revenue (A: Feb. 2024 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (A: Feb. 2023 )	+	Total Inventories (A: Feb. 2024 ))	/	count )	/	Revenue (A: Feb. 2024 )
=	( (143.92	+	117.656)	/	2 )	/	1537.589
=	130.788					/	1537.589
=	0.09

AZZ's Inventory-to-Revenue for the quarter that ended in Feb. 2024 is calculated as

	Inventory-to-Revenue (Q: Feb. 2024 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (Q: Nov. 2023 )	+	Total Inventories (Q: Feb. 2024 ))	/	count )	/	Revenue (Q: Feb. 2024 )
=	( (126.737	+	117.656)	/	2 )	/	366.569
=	122.1965					/	366.569
=	0.33

AZZ (NYSE:AZZ) Inventory-to-Revenue Explanation

An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:

1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.

Likewise, a decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:

More Related Terms:

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

AZZ's Days Inventory for the three months ended in Feb. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Feb. 2024 )	/	Cost of Goods Sold (Q: Feb. 2024 )	*	Days in Period
	=	122.1965	/	285.522	*	365 / 4
	=	39.05

2. Inventory Turnover measures how fast the company turns over its inventory within a year.

AZZ's Inventory Turnover for the quarter that ended in Feb. 2024 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Feb. 2024 )	/	Average Total Inventories (Q: Feb. 2024 )
	=	285.522	/	122.1965
	=	2.34

AZZ Inventory-to-Revenue Related Terms

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AZZ (AZZ) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » AZZ Inc (NYSE:AZZ) » Definitions » Inventory-to-Revenue

Comparable Companies

Traded in Other Exchanges

AI7:Germany

Address

3100 West 7th Street, Suite 500, One Museum Place, Fort Worth, TX, USA, 76107

Website

https://www.azz.com

AZZ Inc is a provider of galvanizing and a variety of metal coating solutions and coil coating solutions to a broad range of end markets in North America. In its Metal Coatings segment, the company offers metal finishing services to protect against corrosion, such as hot dip galvanizing, spin galvanizing, powder coating, anodizing, and plating. The Precoat Metals Segment offers aesthetic and corrosion-resistant coatings for steel and aluminum coils.

Executives

Tiffany Moseley	officer: Chief Accounting Officer	ONE MUSEUM PLACE, 3100 WEST 7TH STREET, SUITE 500, FORT WORTH TX 76107
Ken Lavelle	officer: President & GM - Electrical	ONE MUSEUM PLACE, 3100 W. 7TH STREET, SUITE 500, FORT WORTH TX 76107
Kurt L. Russell	officer: COO - Precoat Metals	ONE MUSEUM PLACE, 3100 WEST 7TH STREET, SUITE 500, FORT WORTH TX 76107
Philip A Schlom	officer: VP, Chief Accounting Officer	C/O PARKER DRILLING COMPANY, 5 GREENWAY PLAZA, SUITE 100, HOUSTON TX 77046
Thomas E Ferguson	director, officer: President and CEO	ONE MUSEUM PLACE, SUITE 500, 3100 WEST 7TH STREET, FORT WORTH TX 76107
David Kaden	director	C/O BLACKSTONE INC., 345 PARK AVENUE, NEW YORK NY 10154
Tara D Mackey	officer: VP Chief Legal Officer	ONE MUSEUM PLACE, SUITE 500, 3100 WEST 7TH STREET, FORT WORTH TX 76116
Bryan Lee Stovall	officer: SVP - Metal Coatings	ONE MUSEUM PLACE, SUITE 500, 3100 WEST 7TH STREET, FORT WORTH TX 76107
Clive A Grannum	director	OLIN CORPORATION, 190 CARONDELET PLAZA, SUITE 1530, CLAYTON MO 63105
Carol R Jackson	director	777 E. WISCONSIN AVENUE, MILWAUKEE WI 53202
Gary L. Hill	officer: President & GM-Industrial	ONE MUSEUM PLACE, 3100 W. 7TH STREET, SUITE 500, FORT WORTH TX 76107
Michael Doucet	officer: SVP - Alternative Coatings	ONE MUSEUM PLACE, 3100 W. 7TH STREET, SUITE 500, FORT WORTH TX 76107
Kevern R Joyce	director	ONE MUSEUM PLACE, SUITE 500, 3100 WEST 7TH STREET, FORT WORTH TX 76107
Paul Wesley Fehlman	other: Finance	ONE MUSEUM PLACE, SUITE 500, 3100 WEST 7TH STREET, FORT WORTH TX 76107
Matthew Varley Emery	officer: VP CHIEF INFORMATION OFFICER	ONE MUSEUM PLACE, SUITE 500, 3100 WEST 7TH STREET, FORT WORTH TX 76107