AutoZone Inc (AZO)
Return on total capital
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,487,740 | 3,277,970 | 2,951,520 | 2,424,540 | 2,225,000 |
| Long-term debt | US$ in thousands | 7,668,550 | 6,122,090 | 5,269,820 | 5,513,370 | 5,206,340 |
| Total stockholders’ equity | US$ in thousands | -4,349,890 | -3,538,910 | -1,797,540 | -877,977 | -1,713,850 |
| Return on total capital | 105.09% | 126.90% | 85.00% | 52.30% | 63.71% |
August 26, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,487,740K ÷ ($7,668,550K + $-4,349,890K)
= 105.09%
The return on total capital for Autozone Inc. has fluctuated over the past five years. In August 2023, the return on total capital was 102.01%, which represents a decrease compared to the previous year when it was 122.22%. This may indicate that the company's ability to generate earnings from its total capital has weakened. However, it's worth noting that in August 2023, the return on total capital was still relatively high compared to previous years, such as in 2020 and 2019 when it stood at 52.16% and 63.45% respectively. This suggests that Autozone Inc. has historically been effective in utilizing its total capital to generate returns, despite the recent decline. Further qualitative and quantitative analysis would be required to understand the underlying reasons for these fluctuations and their implications for the company's financial performance and strategic direction.
Peer comparison
Aug 26, 2023