AutoZone Inc (AZO)
Return on total capital
| Aug 31, 2024 | Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,788,710 | 3,487,740 | 3,277,970 | 2,951,520 | 2,424,540 |
| Long-term debt | US$ in thousands | 9,024,380 | 7,668,550 | 6,122,090 | 5,269,820 | 5,513,370 |
| Total stockholders’ equity | US$ in thousands | -4,749,610 | -4,349,890 | -3,538,910 | -1,797,540 | -877,977 |
| Return on total capital | 88.63% | 105.09% | 126.90% | 85.00% | 52.30% |
August 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,788,710K ÷ ($9,024,380K + $-4,749,610K)
= 88.63%
AutoZone Inc's return on total capital has shown fluctuating performance over the past five years. The ratio stood at 88.63% as of August 31, 2024, representing a decrease from the previous year's figure of 105.09%. Despite this decline, the company still managed to generate a relatively high return on its total capital investment, reflecting its ability to efficiently utilize its resources to generate profits.
Comparing the most recent data to the figures from previous years, we observe a peak in the return on total capital in August 2022 at 126.90%, indicating a strong performance in capital utilization at that time. However, the ratio decreased in the following years but remained above 50%, signifying consistent profitability relative to the invested capital.
In general, AutoZone Inc's return on total capital has shown variability but has generally remained at a relatively high level over the past years. Further analysis of the company's financial performance and operational efficiency would be needed to better understand the factors influencing these fluctuations in return on total capital.
Peer comparison
Aug 31, 2024