AutoZone Inc (AZO)
Debt-to-capital ratio
| Aug 31, 2024 | Aug 31, 2023 | Aug 26, 2023 | Aug 31, 2022 | Aug 27, 2022 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | 7,668,550 | — | 6,122,090 |
| Total stockholders’ equity | US$ in thousands | -4,749,610 | -4,349,890 | -4,349,890 | -3,538,910 | -3,538,910 |
| Debt-to-capital ratio | — | — | 2.31 | — | 2.37 |
August 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $-4,749,610K)
= —
The debt-to-capital ratio of AutoZone Inc has displayed a fluctuating trend over the past five years, varying from as low as 1.19 in 2020 to as high as 2.37 in 2022. A higher ratio suggests a greater reliance on debt to finance the company's operations and growth, which could potentially increase financial risk.
The ratio decreased from 2.37 in 2022 to 1.52 in 2021, indicating a reduction in the proportion of debt in the company's capital structure. However, in the most recent year, the ratio rose again to 2.11, albeit still below the 2022 level.
Overall, the trend suggests some volatility in the company's debt-to-capital structure, with fluctuations indicating changes in the company's approach to financing. It would be important to monitor this ratio in the future to assess the company's leverage and financial risk levels.