AutoZone Inc (AZO)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	3,788,707	3,714,527	3,672,827	3,599,562	3,473,991	3,355,301	3,282,490	3,239,273	3,270,725	3,210,945	3,228,780	3,083,787	2,944,527	2,918,537	2,606,705	2,624,961	2,790,511	2,319,994	2,228,341	2,216,136
Interest expense (ttm)	US$ in thousands	164,464	108,727	108,727	108,727	108,727	63,995	63,995	63,995	107,279	101,403	101,403	101,403	104,298	111,817	111,817	155,560	166,978	101,340	101,340	57,597
Interest coverage		23.04	34.16	33.78	33.11	31.95	52.43	51.29	50.62	30.49	31.67	31.84	30.41	28.23	26.10	23.31	16.87	16.71	22.89	21.99	38.48

August 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,788,707K ÷ $164,464K
= 23.04

AutoZone Inc's interest coverage ratio has shown a generally strong trend over the past few years, indicating the company's ability to comfortably meet its interest obligations with its operating income. The interest coverage ratio has been consistently above 20, reflecting a healthy ability to cover interest expenses. In particular, the highest interest coverage ratios were observed in the most recent periods, suggesting an improving financial position. However, there was a slight decline in the most recent quarter compared to the previous quarter, which warrants further monitoring to ensure sustainable interest coverage levels. Overall, the trend in AutoZone Inc's interest coverage ratio indicates a solid financial position with sufficient earnings to cover interest expenses.