AutoZone Inc (AZO)

Short-term

Turnover ratios

AutoZone Inc's activity ratios show the efficiency of the company in managing its resources.

1. Inventory Turnover: AutoZone Inc's inventory turnover ratio has been relatively stable over the periods analyzed, ranging from 1.34 to 1.51. This indicates the company's ability to sell and replace its inventory efficiently. The consistency in this ratio suggests effective inventory management strategies.

2. Receivables Turnover: The receivables turnover ratio for AutoZone Inc has also been consistent, with values ranging from 32.19 to 38.66. This indicates that the company is efficient in collecting payments from its customers. A higher receivables turnover ratio signifies that the company is able to collect outstanding receivables quickly.

3. Payables Turnover: AutoZone Inc's payables turnover ratio has fluctuated slightly over the periods, but the values have mostly been around 1.1 to 1.2. This suggests that the company takes approximately 1 to 1.2 times a year to pay off its suppliers. A higher payables turnover ratio may indicate that the company is managing its payables effectively.

4. Working Capital Turnover: The working capital turnover ratio is not available for most of the periods, except for the last two periods where it shows values of 34.92 and 26.68, respectively. This ratio indicates how efficiently the company is using its working capital to generate sales. The values suggest a high turnover of working capital, showing effective utilization of resources to drive revenue.

Overall, AutoZone Inc's activity ratios indicate a good level of efficiency in managing inventory, receivables, payables, and working capital, which is crucial for a company in the retail industry.

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Average number of days

Days of inventory on hand (DOH) measures how many days it takes for a company to sell its entire inventory. AutoZone Inc's DOH has fluctuated over the periods provided but generally falls within the range of 242.50 days to 292.65 days. The upward trend in DOH could indicate slower inventory turnover, which may tie up capital in inventory.

Days of sales outstanding (DSO) assesses how many days it takes for a company to collect its accounts receivable. AutoZone Inc's DSO has also varied over the periods but remains relatively low, between 9.44 days and 11.34 days. A lower DSO is positive as it signifies efficient collection of receivables and good cash flow management.

Number of days of payables shows how long a company takes to pay its suppliers. AutoZone Inc's payables days have ranged from 286.39 days to 342.56 days. A higher number of days of payables could indicate that the company is taking longer to settle its obligations, potentially benefiting from extended payment terms.

Overall, AutoZone Inc's activity ratios suggest that the company manages its inventory and receivables efficiently, although it may take longer to pay its suppliers compared to its collection cycle. This analysis highlights the importance of monitoring these ratios for trends and anomalies to assess the company's liquidity and operating efficiency.

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See also:

AutoZone Inc Short-term (Operating) Activity Ratios (Quarterly Data)

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Long-term

The long-term activity ratios for AutoZone Inc, specifically the fixed asset turnover and total asset turnover ratios, have shown some fluctuations over the past few quarters.

The fixed asset turnover ratio measures how effectively the company is utilizing its fixed assets to generate sales. AutoZone's fixed asset turnover ratio has ranged between 2.64 to 3.23 over the past few quarters. The ratio has generally been above 3.00, indicating that AutoZone has been efficient in generating sales from its fixed assets. However, there have been slight fluctuations in the ratio, which may indicate changes in the company's asset utilization efficiency.

On the other hand, the total asset turnover ratio assesses how well the company is using all its assets to generate revenue. AutoZone's total asset turnover ratio has fluctuated between 0.91 to 1.20 during the same period. The ratio has shown some variability, but generally, it has been above 1.00, indicating that AutoZone has been efficient in generating revenue relative to its total assets.

Overall, AutoZone has shown a consistent trend of efficient asset utilization based on the fixed asset turnover ratio being consistently above 3.00 and the total asset turnover ratio generally being above 1.00, despite some fluctuations in the ratios over time.

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See also:

AutoZone Inc Long-term (Investment) Activity Ratios (Quarterly Data)