AutoZone Inc (AZO)
Operating return on assets (Operating ROA)
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 3,473,990 | 3,270,730 | 2,944,530 | 2,417,680 | 2,216,140 |
| Total assets | US$ in thousands | 15,985,900 | 15,275,000 | 14,516,200 | 14,423,900 | 9,895,910 |
| Operating ROA | 21.73% | 21.41% | 20.28% | 16.76% | 22.39% |
August 26, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $3,473,990K ÷ $15,985,900K
= 21.73%
To analyze the operating return on assets (operating ROA) of Autozone Inc., we can observe the trend in the ratio over the past five years. Operating ROA indicates the efficiency with which the company generates operating profits from its assets.
Autozone's operating ROA has shown a fluctuating trend over the past five years. The ratio increased from 16.76% in 2020 to 22.39% in 2019, depicting a significant improvement in 2019. However, there was a slight decline in 2021 to 20.28%, followed by a subsequent increase to 21.41% in 2022, and further to 21.73% in 2023.
The gradual increase in the ratio between 2021 and 2023 indicates an enhancement in the company's ability to generate operating profits from its assets during this period. It is crucial to evaluate the efficiency of asset utilization and operating performance to understand the factors driving these changes in operating ROA.
The varying trends in operating ROA suggest that Autozone has been managing its operating assets with fluctuating levels of efficiency. Further analysis into the company's operational strategies and financial performance drivers is essential to gain a comprehensive understanding of the fluctuations in operating ROA.
Peer comparison
Aug 26, 2023