AutoZone Inc (AZO)
Return on total capital
| Aug 31, 2024 | May 4, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,788,707 | 3,714,527 | 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 |
| Long-term debt | US$ in thousands | 9,024,380 | 8,496,290 | 8,630,550 | 8,583,520 | 7,668,550 | 7,340,480 | 7,042,300 | 6,328,340 | 6,122,090 | 6,057,440 | 5,840,880 | 4,771,270 | 5,269,820 | 5,267,900 | 5,266,400 | 5,514,870 | 5,513,370 | 5,418,270 | 5,287,320 | 5,206,340 |
| Total stockholders’ equity | US$ in thousands | -4,749,610 | -4,838,240 | -4,837,320 | -5,213,670 | -4,349,890 | -4,301,580 | -4,184,170 | -3,837,920 | -3,538,910 | -3,387,230 | -3,137,480 | -2,124,750 | -1,797,540 | -1,763,390 | -1,523,570 | -1,026,980 | -877,977 | -1,632,740 | -1,776,090 | -1,713,850 |
| Return on total capital | 88.63% | 101.54% | 96.83% | 106.82% | 104.68% | 110.41% | 114.85% | 130.07% | 126.62% | 120.25% | 119.43% | 116.52% | 84.80% | 83.28% | 69.65% | 58.49% | 60.20% | 61.29% | 63.46% | 63.45% |
August 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,788,707K ÷ ($9,024,380K + $-4,749,610K)
= 88.63%
AutoZone Inc's return on total capital has shown fluctuations over the past few years, ranging from highs of over 100% to lows in the range of 50-70%. This metric has generally displayed a positive trend, indicating that the company has been effectively generating returns relative to the total capital employed in its operations.
The company experienced a peak in return on total capital in the Nov 19, 2022, quarter at 130.07%, reflecting strong efficiency in utilizing its capital resources. However, there was a slight decline in subsequent quarters before picking up again in the May 6, 2023, quarter, reaching a high of 110.41%.
Despite some fluctuations, AutoZone Inc's return on total capital generally remained above 100% in recent periods, implying that the company has been generating profits that exceed the total capital invested. This indicates a strong performance in utilizing its capital to drive profitability and create shareholder value.
Overall, AutoZone Inc's return on total capital demonstrates the company's ability to efficiently deploy its capital to generate returns for its stakeholders. It is essential for investors to monitor this metric over time to assess the company's operational efficiency and financial performance.
Peer comparison
Aug 31, 2024