AutoZone Inc (AZO)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 3,672,827 | 3,599,562 | 3,473,991 | 3,355,301 | 3,282,490 | 3,239,273 | 3,270,725 | 3,210,945 | 3,228,780 | 3,083,787 | 2,944,527 | 2,918,537 | 2,606,705 | 2,624,961 | 2,790,511 | 2,319,994 | 2,228,341 | 2,216,136 | 2,026,600 | 2,024,842 |
| Total assets | US$ in thousands | 16,717,700 | 16,292,600 | 15,985,900 | 15,597,900 | 15,545,100 | 15,315,900 | 15,275,000 | 14,520,600 | 14,078,500 | 14,460,900 | 14,516,200 | 14,137,900 | 14,160,000 | 14,568,600 | 14,423,900 | 12,902,100 | 12,700,500 | 9,895,910 | 9,773,740 | 9,745,100 |
| Operating ROA | 21.97% | 22.09% | 21.73% | 21.51% | 21.12% | 21.15% | 21.41% | 22.11% | 22.93% | 21.33% | 20.28% | 20.64% | 18.41% | 18.02% | 19.35% | 17.98% | 17.55% | 22.39% | 20.74% | 20.78% |
February 10, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $3,672,827K ÷ $16,717,700K
= 21.97%
Operating return on assets (ROA) is a key financial ratio that indicates a company's ability to generate profits from its assets used in operations. By analyzing AutoZone Inc's historical operating ROA data from February 2019 to February 2024, we observe fluctuations in the company's operational efficiency.
AutoZone's operating ROA has shown some variability over the period, ranging from a low of 17.55% in May 2020 to a high of 22.93% in February 2022. Despite this variance, the company generally maintained a strong performance in utilizing its assets to generate operating profits, with the majority of ratios consistently above 20%.
The downward trend observed in operating ROA from November 2021 to November 2022, with ratios decreasing from 21.33% to 18.41%, raised potential concerns about the company's operational effectiveness during that period. However, AutoZone managed to improve its operating ROA in the subsequent quarters, with ratios rebounding above 20%.
Overall, AutoZone's operating ROA indicates efficient asset utilization and profitability in its operations, with the company demonstrating the ability to generate significant returns relative to its asset base. Continued monitoring of this ratio will be essential to assess the company's operational performance and efficiency in the future.
Peer comparison
Feb 10, 2024