Stock Analysis on Net
AI Tokens
Stock Analysis on Net

AutoZone Inc. (NYSE:AZO)

This company has been moved to the archive! The financial data has not been updated since December 18, 2023.

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

AutoZone Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

Microsoft Excel
Aug 26, 2023 Aug 27, 2022 Aug 28, 2021 Aug 29, 2020 Aug 31, 2019 Aug 25, 2018
Accounts payable 45.05 47.80 41.43 35.75 49.16 47.17
Current portion of operating lease liabilities 1.61 1.59 1.63 1.55 0.00 0.00
Accrued compensation, related payroll taxes and benefits 2.15 2.72 3.24 2.23 1.72 2.09
Property, sales and other taxes 1.04 1.00 0.94 0.84 1.24 1.13
Medical and casualty insurance claims, current portion 0.80 0.75 0.84 0.78 0.90 0.95
Current portion of finance lease liabilities 0.54 0.61 0.62 0.47 0.57 0.56
Accrued gift cards 0.37 0.34 0.35 0.30 0.39 0.29
Accrued interest 0.34 0.33 0.38 0.44 0.49 0.39
Accrued sales and warranty returns 0.27 0.23 0.22 0.22 0.35 0.21
Other 0.75 0.61 0.58 0.45 0.63 0.86
Accrued expenses and other 6.26% 6.60% 7.16% 5.74% 6.28% 6.49%
Income taxes payable 0.33 0.23 0.55 0.52 0.26 0.13
Current liabilities 53.25% 56.23% 50.77% 43.56% 55.70% 53.80%
Long-term debt 47.97 40.08 36.30 38.22 52.61 53.56
Operating lease liabilities, less current portion 18.25 18.58 18.14 17.34 0.00 0.00
Deferred income taxes 3.35 3.50 2.32 2.46 3.15 3.05
Finance lease liabilities, less current portion 1.26 1.42 1.28 1.08 1.25 1.09
Other long-term liabilities 3.14 3.37 3.57 3.42 4.60 4.77
Long-term liabilities 73.96% 66.94% 61.61% 62.53% 61.62% 62.47%
Total liabilities 127.21% 123.17% 112.38% 106.09% 117.32% 116.27%
Preferred stock; no shares issued 0.00 0.00 0.00 0.00 0.00 0.00
Common stock, par value $.01 per share 0.00 0.00 0.00 0.00 0.00 0.00
Additional paid-in capital 9.29 8.87 10.10 8.90 12.78 12.36
Retained deficit -18.51 -8.71 -2.89 -10.06 -13.19 -12.93
Accumulated other comprehensive loss -1.19 -1.97 -2.12 -2.46 -2.72 -2.52
Treasury stock, at cost -16.80 -21.36 -17.47 -2.47 -14.19 -13.17
Stockholders’ deficit -27.21% -23.17% -12.38% -6.09% -17.32% -16.27%
Total liabilities and stockholders’ deficit 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

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).

The capital structure is characterized by a persistent stockholders' deficit, with total liabilities consistently exceeding 100% of the total liabilities and stockholders' deficit across the analyzed six-year period. This indicates a highly leveraged financial position where total obligations outweigh total equity, resulting in a negative net worth from an accounting perspective.

Liability Composition and Trends
Total liabilities have exhibited a general upward trend, increasing from 116.27% in 2018 to 127.21% in 2023. Long-term liabilities have seen a significant rise, growing from 62.47% to 73.96% over the period. A notable shift occurred in 2020 with the emergence of operating lease liabilities, which settled at approximately 18% of the total balance sheet, adding a consistent layer of long-term obligation.
Current Liability Analysis
Current liabilities remained relatively stable, fluctuating between 43.56% and 56.23%, and ending at 53.25% in 2023. Accounts payable is the primary driver of current obligations, representing a substantial portion of the total balance sheet, with values ranging from 35.75% to 49.16%. This suggests a strategic reliance on trade credit to manage operational liquidity.
Debt Dynamics
Long-term debt showed volatility, decreasing from 53.56% in 2018 to a low of 36.30% in 2021, before rebounding to 47.97% by 2023. This fluctuation indicates periodic adjustments in the company's long-term borrowing strategy or debt repayment cycles.
Stockholders' Deficit and Equity Erosion
The stockholders' deficit has widened from -16.27% in 2018 to -27.21% in 2023. Two primary factors contribute to this trend: a consistent retained deficit, which reached its peak of -18.51% in 2023, and significant expenditures on treasury stock. The treasury stock account reached a high of -21.36% in 2022, indicating an aggressive share repurchase program that systematically reduces stockholders' equity.

Overall, the financial profile reveals a strategy of utilizing high leverage and aggressive share buybacks, which has resulted in an increasing stockholders' deficit while maintaining a heavy reliance on accounts payable and long-term debt to fund the organization's assets.

AI Ask an analyst for more

My previous chats

Add tokens

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?