AutoZone Inc., adjustment to net income

US$ in thousands

12 months ended:	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019	Aug 25, 2018
Net income (as reported)	2,528,426)	2,429,604)	2,170,314)	1,732,972)	1,617,221)	1,337,536)
Add: Unrealized gains (losses) on marketable debt securities, net of taxes	320)	(2,760)	(1,256)	1,254)	1,464)	(862)
Net income (adjusted)	2,528,746)	2,426,844)	2,169,058)	1,734,226)	1,618,685)	1,336,674)

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AutoZone Inc., adjusted profitability ratios

	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019	Aug 25, 2018
Net Profit Margin
Reported net profit margin	14.48%	14.95%	14.84%	13.72%	13.63%	11.92%
Adjusted net profit margin	14.49%	14.93%	14.83%	13.73%	13.64%	11.91%
Return on Equity (ROE)
Reported ROE	—	—	—	—	—	—
Adjusted ROE	—	—	—	—	—	—
Return on Assets (ROA)
Reported ROA	15.82%	15.91%	14.95%	12.01%	16.34%	14.31%
Adjusted ROA	15.82%	15.89%	14.94%	12.02%	16.36%	14.30%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	AutoZone Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	AutoZone Inc. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

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	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019	Aug 25, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income	2,528,426)	2,429,604)	2,170,314)	1,732,972)	1,617,221)	1,337,536)
Net sales	17,457,209)	16,252,230)	14,629,585)	12,631,967)	11,863,743)	11,221,077)
Profitability Ratio
Net profit margin¹	14.48%	14.95%	14.84%	13.72%	13.63%	11.92%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	2,528,746)	2,426,844)	2,169,058)	1,734,226)	1,618,685)	1,336,674)
Net sales	17,457,209)	16,252,230)	14,629,585)	12,631,967)	11,863,743)	11,221,077)
Profitability Ratio
Adjusted net profit margin²	14.49%	14.93%	14.83%	13.73%	13.64%	11.91%

2023 Calculations

¹ Net profit margin = 100 × Net income ÷ Net sales
= 100 × 2,528,426 ÷ 17,457,209 = 14.48%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Net sales
= 100 × 2,528,746 ÷ 17,457,209 = 14.49%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	AutoZone Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019	Aug 25, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income	2,528,426)	2,429,604)	2,170,314)	1,732,972)	1,617,221)	1,337,536)
Stockholders’ deficit	(4,349,894)	(3,538,913)	(1,797,536)	(877,977)	(1,713,851)	(1,520,355)
Profitability Ratio
ROE¹	—	—	—	—	—	—
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	2,528,746)	2,426,844)	2,169,058)	1,734,226)	1,618,685)	1,336,674)
Stockholders’ deficit	(4,349,894)	(3,538,913)	(1,797,536)	(877,977)	(1,713,851)	(1,520,355)
Profitability Ratio
Adjusted ROE²	—	—	—	—	—	—

2023 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ deficit
= 100 × 2,528,426 ÷ -4,349,894 = —

² Adjusted ROE = 100 × Adjusted net income ÷ Stockholders’ deficit
= 100 × 2,528,746 ÷ -4,349,894 = —

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	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019	Aug 25, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income	2,528,426)	2,429,604)	2,170,314)	1,732,972)	1,617,221)	1,337,536)
Total assets	15,985,878)	15,275,043)	14,516,199)	14,423,872)	9,895,913)	9,346,980)
Profitability Ratio
ROA¹	15.82%	15.91%	14.95%	12.01%	16.34%	14.31%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	2,528,746)	2,426,844)	2,169,058)	1,734,226)	1,618,685)	1,336,674)
Total assets	15,985,878)	15,275,043)	14,516,199)	14,423,872)	9,895,913)	9,346,980)
Profitability Ratio
Adjusted ROA²	15.82%	15.89%	14.94%	12.02%	16.36%	14.30%

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 2,528,426 ÷ 15,985,878 = 15.82%

² Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 2,528,746 ÷ 15,985,878 = 15.82%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	AutoZone Inc. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

AutoZone Inc. (NYSE:AZO)

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