AutoZone Inc (AZO)

Debt-to-assets ratio

		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
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 assets	US$ in thousands	17,176,500	17,108,400	16,717,700	16,292,600	15,985,900	15,597,900	15,545,100	15,315,900	15,275,000	14,520,600	14,078,500	14,460,900	14,516,200	14,137,900	14,160,000	14,568,600	14,423,900	12,902,100	12,700,500	9,895,910
Debt-to-assets ratio		0.53	0.50	0.52	0.53	0.48	0.47	0.45	0.41	0.40	0.42	0.41	0.33	0.36	0.37	0.37	0.38	0.38	0.42	0.42	0.53

August 31, 2024 calculation

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

AutoZone Inc's debt-to-assets ratio has shown fluctuations over the past few years. The ratio has ranged from a low of 0.33 to a high of 0.53. From the data provided, it appears that the ratio has generally been trending upwards, with the most recent reading of 0.53 being on the higher end of the range.

A debt-to-assets ratio of 0.53 indicates that AutoZone Inc finances approximately 53% of its assets with debt, with the remaining 47% financed by equity. This suggests that the company relies heavily on debt to fund its operations and investments.

It is important to note that a higher debt-to-assets ratio could indicate higher financial risk for the company, as it means that a larger portion of its assets are financed through debt, which can lead to increased interest expenses and potential liquidity challenges. However, a higher debt-to-assets ratio could also mean that the company is leveraging its capital structure to generate higher returns for its shareholders.

Overall, further analysis of AutoZone Inc's financial position, cash flow, and profitability is recommended to provide a more comprehensive understanding of the implications of its debt-to-assets ratio.