AutoZone Inc (AZO)

Return on assets (ROA)

		Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019
Net income	US$ in thousands	2,528,430	2,429,600	2,170,310	1,732,970	1,617,220
Total assets	US$ in thousands	15,985,900	15,275,000	14,516,200	14,423,900	9,895,910
ROA		15.82%	15.91%	14.95%	12.01%	16.34%

August 26, 2023 calculation

ROA = Net income ÷ Total assets
= $2,528,430K ÷ $15,985,900K
= 15.82%

Based on the provided data, Autozone Inc.'s return on assets (ROA) has shown some fluctuations over the past five years. ROA is a measure of how efficiently a company is utilizing its assets to generate profit.

In 2019, Autozone Inc.'s ROA was 16.34%, indicating that the company generated approximately $0.1634 in profit for every $1 of assets. This was followed by a slight decrease in ROA to 12.01% in 2020, hinting at a potential decline in asset efficiency and profitability.

However, the company's ROA rebounded in 2021 to 14.95%, showing signs of improvement in asset utilization and profitability. This positive trend continued, with the ROA reaching 15.91% in 2022, indicating a consistent improvement in generating profit from its assets.

Notably, in the most recent period, the ROA further increased to 15.82%, suggesting that the company has been effectively leveraging its assets to generate higher earnings.

Overall, Autozone Inc.'s ROA reflects the company's ability to effectively manage its assets to generate profit, with the recent trend indicating an improvement in asset utilization and efficiency. However, it's important to consider other financial metrics and industry benchmarks to gain a comprehensive understanding of the company's financial performance.