AutoZone Inc (AZO)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (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 |
| Long-term debt | US$ in thousands | 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 | 5,151,920 | 5,111,200 |
| Total stockholders’ equity | US$ in thousands | -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 | -1,589,510 | -1,594,360 |
| Return on total capital | 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% | 56.89% | 57.58% |
February 10, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,672,827K ÷ ($8,630,550K + $-4,837,320K)
= 96.83%
AutoZone Inc's return on total capital has exhibited variability over the time period shown. The return on total capital was highest at 130.07% in November 2022 and lowest at 56.89% in May 2019. The company's return on total capital has generally been above 100%, indicating that AutoZone Inc has been effective in generating returns from the total capital employed in its operations. Despite some fluctuations, the return on total capital has been relatively high, reflecting the company's ability to efficiently utilize its capital to generate profits. However, it's worth noting the declining trend from November 2022 to May 2019, showing a decrease in return on total capital over this period. This may warrant further investigation into the factors contributing to this decline in performance.
Peer comparison
Feb 10, 2024