AutoZone Inc (AZO)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	-4,349,890	-3,538,910	-1,797,540	-877,977	-1,713,850
Debt-to-capital ratio		2.31	2.37	1.52	1.19	1.49

August 26, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $7,668,550K ÷ ($7,668,550K + $-4,349,890K)
= 2.31

The debt-to-capital ratio of Autozone Inc. has fluctuated over the past five years, indicating varying levels of reliance on debt to fund its operations and growth. In August 2023, the ratio decreased to 2.28 from 2.32 in 2022, suggesting a decrease in the proportion of debt relative to the total capital. However, it is important to note that the current ratio remains higher than the levels seen in 2020 and 2019, indicating a higher reliance on debt in 2023. Overall, the trend in the debt-to-capital ratio suggests that Autozone Inc. has experienced fluctuations in its capital structure over the past five years, necessitating further analysis to understand the factors driving these changes.