AutoZone Inc (AZO)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	-4,749,610	-4,349,890	-3,538,910	-1,797,540	-877,977
Debt-to-capital ratio		2.11	2.31	2.37	1.52	1.19

August 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $9,024,380K ÷ ($9,024,380K + $-4,749,610K)
= 2.11

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.