AutoZone Inc (AZO)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 304,096 | 282,981 | 277,054 | 274,916 | 301,286 | 269,790 | 264,380 | 263,044 | 239,423 | 961,125 | 1,171,340 | 975,646 | 1,026,160 | 1,664,000 | 1,750,820 | 509,118 | 158,089 | 176,300 | 174,058 | 195,665 |
| Short-term investments | US$ in thousands | — | — | 39,639 | — | — | — | 49,768 | — | — | — | — | — | — | — | — | — | 52,365 | 67,958 | — | — |
| Receivables | US$ in thousands | 501,117 | 511,907 | 520,385 | — | — | — | 504,886 | — | — | — | 378,392 | — | — | — | — | — | — | — | — | — |
| 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 |
| 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 |
February 10, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($304,096K
+ $—K
+ $501,117K)
÷ $8,772,610K
= 0.09
The quick ratio of AutoZone Inc has shown variability over time based on the data provided. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations.
Looking at the historical trend, the quick ratio has fluctuated between 0.03 and 0.28. This indicates that AutoZone Inc has faced challenges in maintaining a strong liquidity position during certain periods. It is concerning that the quick ratio has frequently been below 0.5, which suggests a limited ability to cover immediate liabilities with current assets.
Some improvement in the quick ratio is observed in certain periods, such as Aug 28, 2021, with a quick ratio of 0.21 and Nov 21, 2020, with a quick ratio of 0.26, indicating a better ability to cover short-term obligations with liquid assets during those periods.
Overall, the trend in AutoZone Inc's quick ratio suggests a need for the company to focus on managing its liquidity more effectively to ensure it can meet its short-term financial obligations in a more stable manner.
Peer comparison
Feb 10, 2024