AutoZone Inc (AZO)
Solvency ratios
| Aug 31, 2024 | Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.53 | 0.48 | 0.40 | 0.36 | 0.38 |
| Debt-to-capital ratio | 2.11 | 2.31 | 2.37 | 1.52 | 1.19 |
| Debt-to-equity ratio | — | — | — | — | — |
| Financial leverage ratio | — | — | — | — | — |
The solvency ratios of AutoZone Inc over the past five years show a fluctuating trend in the company's leverage and debt management.
The debt-to-assets ratio has been increasing steadily over the period, reaching 0.53 in 2024 from 0.38 in 2020. This indicates that a larger portion of AutoZone's assets is financed by debt, which may imply a higher financial risk for the company.
The debt-to-capital ratio, on the other hand, has shown more volatility. It peaked in 2022 at 2.37, then decreased in the following years. The ratio in 2024 stands at 2.11. This ratio reflects the proportion of a company's capital that is debt-financed. The declining trend in recent years could indicate a lower dependency on debt for financing capital expenditures.
No data is available for the debt-to-equity ratio or financial leverage ratio, which limits the comprehensive assessment of AutoZone's solvency using these metrics. However, the debt-to-assets and debt-to-capital ratios suggest a mixed picture in terms of the company's leverage and debt management practices over the analyzed period. Further analysis and comparison with industry benchmarks would provide more insights into AutoZone's solvency position.
Coverage ratios
| Aug 31, 2024 | Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | 10.90 | 16.48 | 14.59 | 11.66 |
AutoZone Inc's interest coverage ratio has fluctuated over the past five years, indicating the company's ability to meet its interest obligations from its operating income. The interest coverage ratio was not provided for the most recent fiscal year, suggesting that the data might not be available or the ratio may have been below a significant threshold.
In the preceding years, the trend shows a generally healthy interest coverage ratio, with a high of 16.48 in Aug 27, 2022. This indicates that in that particular year, AutoZone Inc generated operating income that was 16.48 times higher than its interest expenses, signifying a strong ability to cover its interest payments comfortably.
Although there has been some volatility in the ratio over the years, the overall trend showcases a solid financial position in terms of servicing debt obligations. However, more recent data is needed to assess the current health of the company's interest coverage ratio.