Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
Quarterly Data
AutoZone Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity (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 financial structure is characterized by a persistent and widening stockholders' deficit, with total liabilities consistently exceeding 100% of the total liabilities and stockholders' deficit. This indicates a capital structure heavily reliant on leverage and aggressive equity reduction strategies over the analyzed period.
- Equity and Capital Erosion
- A significant and increasing stockholders' deficit is observed, moving from -16.23% in November 2017 to -32.00% by November 2023. This trend is primarily driven by substantial investments in treasury stock, which reached a peak of -27.18% in November 2022 and remained high at -25.69% in November 2023, reflecting an aggressive share repurchase program. Retained earnings have remained predominantly negative throughout the period, with a notable deficit of -28.77% in February 2023, further contributing to the negative equity position.
- Long-Term Liability Trends
- Long-term liabilities have shown a steady upward trajectory, increasing from 62.30% in November 2017 to 78.08% in November 2023. Long-term debt, less current portion, exhibited significant volatility; it declined from approximately 53% in 2018 to a low of 32.99% in November 2021, before rebounding sharply to 52.68% by November 2023. Operating lease liabilities, introduced into the data in November 2019, have remained relatively stable, fluctuating between 17.33% and 19.74% of the total balance sheet.
- Current Liability Analysis
- Current liabilities generally fluctuated between 43% and 56%. Accounts payable, the largest component of current liabilities, remained stable around 46-49% from 2017 through 2019, experienced a notable decline to a low of 35.75% in August 2020, and subsequently recovered to 44.09% by November 2023. Accrued expenses and other current liabilities remained relatively consistent, generally ranging between 4.87% and 7.38%.
- Overall Leverage Position
- Total liabilities as a percentage of the balance sheet have increased over the long term, rising from 116.23% in November 2017 to 132.00% in November 2023. The expansion of the liability base, coupled with the deepening stockholders' deficit, suggests a strategic preference for financing operations and share buybacks through debt and liabilities rather than retained equity.
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