AutoZone Inc (AZO)

Receivables turnover

		Aug 31, 2024	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020
Revenue	US$ in thousands	18,490,300	17,457,200	16,252,200	14,629,600	12,632,000
Receivables	US$ in thousands	545,575	520,385	504,886	378,392	364,774
Receivables turnover		33.89	33.55	32.19	38.66	34.63

August 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $18,490,300K ÷ $545,575K
= 33.89

The receivables turnover for AutoZone Inc has been relatively stable over the past five years, ranging from 32.19 to 38.66. This indicates that the company is efficient in collecting payments from its customers. The higher the turnover ratio, the better, as it signifies that the company is converting its accounts receivable into cash more frequently. AutoZone Inc's average receivables turnover over the period was 34.58, suggesting consistent performance in managing its receivables. Overall, the company has been effectively managing its credit sales and collection processes, which is a positive indicator of its financial health.