AutoZone Inc (AZO)

Debt-to-assets ratio

		Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019
Long-term debt	US$ in thousands	7,668,550	6,122,090	5,269,820	5,513,370	5,206,340
Total assets	US$ in thousands	15,985,900	15,275,000	14,516,200	14,423,900	9,895,910
Debt-to-assets ratio		0.48	0.40	0.36	0.38	0.53

August 26, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $7,668,550K ÷ $15,985,900K
= 0.48

The debt-to-assets ratio of Autozone Inc. has exhibited fluctuations over the past five years. In 2019, the ratio was relatively high at 0.53, indicating that a significant portion of the company's assets were financed through debt. Subsequently, the ratio decreased to 0.38 in 2020, reflecting a reduction in the proportion of debt financing in relation to total assets. However, in the following years, the ratio increased to 0.49 in 2023, signifying a higher level of debt financing relative to assets compared to the previous year. Overall, the trend suggests that Autozone Inc. has been reliant on debt to finance its assets, with fluctuations indicating changes in the company's capital structure and potentially impacting its financial risk and leverage.