Common-Size Balance Sheet: Assets
Quarterly Data
AutoZone Inc., common-size consolidated balance sheet: assets (quarterly data)
Based on: 10-Q (reporting date: 2023-11-18), 10-K (reporting date: 2023-08-26), 10-Q (reporting date: 2023-05-06), 10-Q (reporting date: 2023-02-11), 10-Q (reporting date: 2022-11-19), 10-K (reporting date: 2022-08-27), 10-Q (reporting date: 2022-05-07), 10-Q (reporting date: 2022-02-12), 10-Q (reporting date: 2021-11-20), 10-K (reporting date: 2021-08-28), 10-Q (reporting date: 2021-05-08), 10-Q (reporting date: 2021-02-13), 10-Q (reporting date: 2020-11-21), 10-K (reporting date: 2020-08-29), 10-Q (reporting date: 2020-05-09), 10-Q (reporting date: 2020-02-15), 10-Q (reporting date: 2019-11-23), 10-K (reporting date: 2019-08-31), 10-Q (reporting date: 2019-05-04), 10-Q (reporting date: 2019-02-09), 10-Q (reporting date: 2018-11-17), 10-K (reporting date: 2018-08-25), 10-Q (reporting date: 2018-05-05), 10-Q (reporting date: 2018-02-10), 10-Q (reporting date: 2017-11-18).
The asset composition of the company underwent a significant structural transformation between late 2019 and early 2020, transitioning from a balance sheet heavily weighted toward current assets and physical property to one incorporating substantial right-of-use assets. This shift resulted in a long-term trend where current assets decreased as a percentage of total assets, while long-term assets increased their relative share of the total asset base.
- Liquidity and Cash Position
- Cash and cash equivalents remained relatively stable between 1.2% and 3.1% of total assets for most of the period, with a notable exception during the 2020 calendar year. A sharp increase was observed peaking at 12.14% in August 2020, indicating a temporary surge in liquidity. Following this peak, cash levels returned to a baseline of approximately 1.7% to 1.9% by early 2022, where they have remained consistent.
- Working Capital and Inventory Management
- Merchandise inventories represented the largest component of current assets, though their relative weight declined over the analyzed period. Inventory levels dropped from a range of 42% to 44% prior to November 2019 to a lower range of 31% to 36% in subsequent years. Accounts receivable remained remarkably stable, fluctuating narrowly between 2.4% and 3.3%, suggesting a consistent credit policy relative to the overall size of the balance sheet.
- Fixed Assets and Lease Accounting Impact
- A fundamental change in asset reporting occurred in November 2019 with the introduction of operating lease right-of-use assets, which immediately accounted for approximately 20% of total assets. This introduction coincided with a reduction in the relative weight of net property and equipment, which fell from approximately 44% to approximately 33% during the same period. While gross property and equipment and accumulated depreciation both saw percentage declines, the net property and equipment ratio has stabilized around 34% to 35% in recent quarters.
- Long-term Assets and Intangibles
- Total long-term assets increased from a baseline of approximately 49% to roughly 57% of the total balance sheet following the recognition of lease assets. Goodwill exhibited a steady downward trend, declining from 4.17% in November 2017 to 1.86% by November 2023, indicating that intangible assets are becoming a smaller portion of the company's overall asset base.
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