AutoZone Inc (AZO)

Interest coverage

		Aug 31, 2024	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	3,788,710	3,487,740	3,277,970	2,951,520	2,424,540
Interest expense	US$ in thousands	-2,301	320,121	198,883	202,326	208,021
Interest coverage		—	10.90	16.48	14.59	11.66

August 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $3,788,710K ÷ $-2,301K
= —

AutoZone Inc's interest coverage ratio has fluctuated over the past five years. In the most recent fiscal year ending August 31, 2024, specific data was not provided for the interest coverage ratio. However, in the preceding years, the trend shows that the company has generally been able to comfortably cover its interest expenses.

The interest coverage ratio peaked in August 2022 at 16.48, indicating that AutoZone Inc's earnings before interest and taxes (EBIT) were more than sufficient to cover its interest obligations. This suggests a strong ability to meet its interest payments from its operating income.

While there was a slight decrease in the interest coverage ratio in the following year (August 2023), it remained relatively healthy at 10.90. This indicates that the company's earnings still provided a comfortable buffer to cover its interest expenses.

Overall, AutoZone Inc has demonstrated solid interest coverage ratios over the years, indicating a stable financial position in terms of meeting its debt obligations through operational earnings. Nevertheless, a specific figure for the 2024 interest coverage ratio would provide a clearer picture of the company's current ability to cover its interest payments.