Analysis of Debt
Total Debt (Carrying Amount)
AutoZone Inc., balance sheet: debt
US$ in thousands
Based on: 10-K (reporting date: 2023-08-26), 10-K (reporting date: 2022-08-27), 10-K (reporting date: 2021-08-28), 10-K (reporting date: 2020-08-29), 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-25).
| Debt item | Description | The company |
|---|---|---|
| Total long-term debt and finance lease liabilities (carrying amount) | Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations. | AutoZone Inc. total debt increased from 2021 to 2022 and from 2022 to 2023. |
Total Debt (Fair Value)
| Aug 26, 2023 | |
|---|---|
| Selected Financial Data (US$ in thousands) | |
| Long-term debt | 7,261,900) |
| Finance lease liabilities | 287,618) |
| Total long-term debt and finance lease liabilities (fair value) | 7,549,518) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.95 |
Based on: 10-K (reporting date: 2023-08-26).
Weighted-average Interest Rate on Debt
Weighted-average effective interest rate on long-term debt and finance lease liabilities: 4.21%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 3.32% | 300,000) | 9,960) | |
| 3.36% | 400,000) | 13,440) | |
| 3.78% | 500,000) | 18,900) | |
| 3.28% | 400,000) | 13,120) | |
| 5.09% | 450,000) | 22,905) | |
| 3.83% | 600,000) | 22,980) | |
| 4.43% | 450,000) | 19,935) | |
| 3.86% | 450,000) | 17,370) | |
| 4.09% | 750,000) | 30,675) | |
| 2.19% | 600,000) | 13,140) | |
| 4.76% | 750,000) | 35,700) | |
| 4.70% | 550,000) | 25,850) | |
| 5.22% | 300,000) | 15,660) | |
| 5.43% | 1,209,600) | 65,681) | |
| 3.85% | 287,618) | 11,073) | |
| Total | 7,997,218) | 336,390) | |
| 4.21% | |||
Based on: 10-K (reporting date: 2023-08-26).
1 US$ in thousands
2 Weighted-average interest rate = 100 × 336,390 ÷ 7,997,218 = 4.21%
Interest Costs Incurred
AutoZone Inc., interest costs incurred
US$ in thousands
Based on: 10-K (reporting date: 2023-08-26), 10-K (reporting date: 2022-08-27), 10-K (reporting date: 2021-08-28), 10-K (reporting date: 2020-08-29), 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-25).
| Debt item | Description | The company |
|---|---|---|
| Interest expense, less capitalized interest | Amount of the cost of borrowed funds accounted for as interest expense for debt. | AutoZone Inc. interest expense, less capitalized interest decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
| Capitalized interest | Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred. | AutoZone Inc. capitalized interest decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
| Interest expense | Total interest costs incurred during the period and either capitalized or charged against earnings. | AutoZone Inc. interest expense decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
Adjusted Interest Coverage Ratio
Based on: 10-K (reporting date: 2023-08-26), 10-K (reporting date: 2022-08-27), 10-K (reporting date: 2021-08-28), 10-K (reporting date: 2020-08-29), 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-25).
2023 Calculations
1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense, less capitalized interest
= 3,486,040 ÷ 318,426 = 10.95
2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest expense
= 3,486,040 ÷ 320,121 = 10.89
| Solvency ratio | Description | The company |
|---|---|---|
| Adjusted interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest). | AutoZone Inc. adjusted interest coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |