AutoZone Inc (AZO)

Debt-to-assets ratio

		Aug 31, 2024	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020
Long-term debt	US$ in thousands	9,024,380	7,668,550	6,122,090	5,269,820	5,513,370
Total assets	US$ in thousands	17,176,500	15,985,900	15,275,000	14,516,200	14,423,900
Debt-to-assets ratio		0.53	0.48	0.40	0.36	0.38

August 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $9,024,380K ÷ $17,176,500K
= 0.53

The debt-to-assets ratio of AutoZone Inc has shown an increasing trend over the past five years, indicating a higher proportion of debt relative to its total assets. In particular, from August 2020 to August 2024, the ratio has steadily increased from 0.38 to 0.53. This suggests that AutoZone Inc relies more on debt financing to support its operations and growth strategies. A higher debt-to-assets ratio may indicate higher financial risk and dependency on borrowed funds. It is important for investors and stakeholders to monitor this trend closely to assess the company's ability to manage its debt levels effectively and sustain its financial health in the long term.