AutoZone Inc (AZO)

Current ratio

		Feb 10, 2024	Nov 18, 2023	Aug 26, 2023	May 6, 2023	Feb 11, 2023	Nov 19, 2022	Aug 27, 2022	May 7, 2022	Feb 12, 2022	Nov 20, 2021	Aug 28, 2021	May 8, 2021	Feb 13, 2021	Nov 21, 2020	Aug 29, 2020	May 9, 2020	Nov 23, 2019	Aug 31, 2019	May 4, 2019	Feb 9, 2019
Total current assets	US$ in thousands	7,157,060	6,956,800	6,779,430	6,708,870	6,794,800	6,633,120	6,627,980	6,254,720	5,903,770	6,349,150	6,415,300	6,224,400	6,326,840	6,836,800	6,811,870	5,397,990	5,156,980	5,028,680	4,971,340	4,997,070
Total current liabilities	US$ in thousands	8,772,610	8,785,620	8,511,860	8,464,950	8,614,620	8,708,990	8,588,390	8,064,080	7,684,640	8,087,890	7,369,750	7,013,250	6,804,270	6,456,700	6,283,090	5,769,080	5,868,240	5,512,140	5,316,890	5,334,300
Current ratio		0.82	0.79	0.80	0.79	0.79	0.76	0.77	0.78	0.77	0.79	0.87	0.89	0.93	1.06	1.08	0.94	0.88	0.91	0.94	0.94

February 10, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $7,157,060K ÷ $8,772,610K
= 0.82

The current ratio of AutoZone Inc has fluctuated over the past few years, ranging from 0.76 to 1.08. Recently, the current ratio has been around 0.79 to 0.82, indicating that the company may have struggled to maintain a healthy level of current assets to cover its short-term liabilities.

A current ratio below 1 suggests that AutoZone Inc may have difficulties meeting its short-term obligations with its current assets alone. It's important for the company to closely monitor and manage its liquidity position to ensure it has enough current assets to cover its current liabilities.

It's worth noting that the current ratio improved significantly from 2019 to early 2021, reaching above 1, which indicates that AutoZone Inc had a stronger liquidity position during that period. However, the ratio has decreased since then, underscoring the importance of continuous monitoring and management of liquidity for the company's financial health and stability.