AutoZone Inc (AZO)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | -4,749,610 | -4,838,240 | -4,837,320 | -5,213,670 | -4,349,890 | -4,301,580 | -4,184,170 | -3,837,920 | -3,538,910 | -3,387,230 | -3,137,480 | -2,124,750 | -1,797,540 | -1,763,390 | -1,523,570 | -1,026,980 | -877,977 | -1,632,740 | -1,776,090 | -1,713,850 |
| Debt-to-capital ratio | 2.11 | 2.32 | 2.28 | 2.55 | 2.31 | 2.42 | 2.46 | 2.54 | 2.37 | 2.27 | 2.16 | 1.80 | 1.52 | 1.50 | 1.41 | 1.23 | 1.19 | 1.43 | 1.51 | 1.49 |
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 fluctuated over the periods presented, ranging from 1.19 to 2.55. The ratio indicates the proportion of the company's capital that is financed through debt. A higher ratio suggests a higher level of debt relative to total capital, which can indicate increased financial risk.
Looking at the trend, we see an increase in the debt-to-capital ratio from November 2019 to November 2022, reaching a peak of 2.55 in November 2023. This upward trend may suggest that AutoZone Inc was relying more heavily on debt to finance its operations or growth during this period.
However, the ratio then decreased from November 2023 to February 2024 before increasing again in May and August 2024. The recent fluctuations in the ratio may indicate changes in the company's capital structure or debt management strategy.
It is important for investors and stakeholders to closely monitor the debt-to-capital ratio over time to assess the company's ability to meet its financial obligations and manage its debt levels effectively.
Peer comparison
Aug 31, 2024