AutoZone Inc (AZO)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 0.09 | 0.09 | 0.10 | 0.03 | 0.03 | 0.03 | 0.10 | 0.03 | 0.03 | 0.12 | 0.21 | 0.14 | 0.15 | 0.26 | 0.28 | 0.09 | 0.04 | 0.04 | 0.03 | 0.04 |
| Cash ratio | 0.03 | 0.03 | 0.04 | 0.03 | 0.03 | 0.03 | 0.04 | 0.03 | 0.03 | 0.12 | 0.16 | 0.14 | 0.15 | 0.26 | 0.28 | 0.09 | 0.04 | 0.04 | 0.03 | 0.04 |
AutoZone Inc's liquidity ratios show fluctuations over the past few years. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has been relatively low, hovering around 0.8. This indicates that AutoZone may have struggled to meet its short-term debt obligations in some periods.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has been consistently low, averaging around 0.1. This suggests that AutoZone may have had difficulty meeting its immediate payment obligations without relying on inventory in the short term.
The cash ratio, which provides the most conservative measure of liquidity by only considering cash and cash equivalents, has also been low, averaging around 0.1. This implies that AutoZone may have had limited cash resources available to cover its short-term liabilities.
Overall, the liquidity ratios indicate that AutoZone may have faced challenges in maintaining sufficient liquid assets to meet its short-term financial obligations during the periods analyzed. Investors and stakeholders should closely monitor these ratios to assess AutoZone's ability to weather potential financial challenges in the future.
See also:
AutoZone Inc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -41.06 | -50.82 | -51.67 | -317.76 | -325.79 | -334.06 | -66.70 | -329.17 | -314.20 | -71.36 | -63.12 | -314.82 | -312.42 | -38.55 | -37.94 | -306.18 | -30.10 | -36.23 | -323.72 | -325.40 |
The cash conversion cycle of AutoZone Inc has shown variability over the past few years. Based on the data provided, the cash conversion cycle has fluctuated from negative 30.10 days to negative 334.06 days.
A negative cash conversion cycle typically indicates that the company is able to convert its resources into cash quickly, which is a positive sign. AutoZone Inc has shown instances of achieving negative cash conversion cycles, suggesting efficient management of its working capital.
However, there are also instances where the cash conversion cycle has been significantly negative, such as -317.76 days and -325.40 days. Such extreme negative values may be attributed to specific factors such as aggressive inventory management or extended payment terms from suppliers, which can impact the overall cash flow dynamics of the company.
Overall, while AutoZone Inc demonstrates the ability to efficiently convert its assets into cash in several periods, it is essential for the company to maintain a balanced cash conversion cycle to ensure operational stability and sustained financial health.