AutoZone Inc (AZO)
Profitability ratios
Return on sales
| Aug 31, 2024 | Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 53.09% | 51.96% | 52.13% | 52.75% | 53.60% |
| Operating profit margin | 20.49% | 19.90% | 20.12% | 20.13% | 19.14% |
| Pretax margin | 18.05% | 18.15% | 18.95% | 18.79% | 17.55% |
| Net profit margin | 14.40% | 14.48% | 14.95% | 14.84% | 13.72% |
AutoZone Inc's profitability ratios have shown consistency over the past five years. The gross profit margin has ranged from 51.96% to 53.60%, indicating that the company effectively manages its cost of goods sold. The operating profit margin has consistently improved from 19.14% in 2020 to 20.49% in 2024, reflecting efficient cost management in relation to operating expenses.
The pretax margin has fluctuated slightly, ranging from 17.55% to 18.95%, but overall demonstrates the ability of AutoZone Inc to generate income before tax relative to its total revenue. The net profit margin has also shown stability, with a range of 13.72% to 14.95%, indicating the company's ability to generate profit after accounting for all expenses and taxes.
Overall, AutoZone Inc's profitability ratios suggest a consistent and sound financial performance over the years, showcasing effective revenue generation and cost management practices.
Return on investment
| Aug 31, 2024 | Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 22.06% | 21.73% | 21.41% | 20.28% | 16.76% |
| Return on assets (ROA) | 15.50% | 15.82% | 15.91% | 14.95% | 12.01% |
| Return on total capital | 88.63% | 105.09% | 126.90% | 85.00% | 52.30% |
| Return on equity (ROE) | — | — | — | — | — |
AutoZone Inc's profitability ratios have shown consistent improvement over the past five years.
1. Operating return on assets (Operating ROA) has increased steadily from 16.76% in Aug 2020 to 22.06% in Aug 2024, indicating that the company is generating more operating income relative to its total assets.
2. Return on assets (ROA) has also exhibited a positive trend, rising from 12.01% in Aug 2020 to 15.50% in Aug 2024, showing that AutoZone is effectively utilizing its assets to generate profit.
3. Return on total capital has shown significant fluctuations over the years, ranging from 52.30% in Aug 2020 to 126.90% in Aug 2022. Despite these fluctuations, the ratio remains high, suggesting that the company is generating substantial returns on the total capital employed.
4. The data does not provide Return on equity (ROE) figures for AutoZone Inc, hence the analysis of the company's profitability from the equity perspective is not available.
Overall, AutoZone Inc's profitability ratios demonstrate a positive trend, indicating efficient utilization of assets and capital to generate income.