AutoZone Inc. (NYSE:AZO)

Current Assets

The current assets of the company show an overall upward trend over the period from 2018 to 2023. Starting at approximately 4.64 billion USD in 2018, the value increased to over 6.77 billion USD by 2023. There was a significant rise observed particularly between 2019 and 2020, reaching about 6.81 billion USD, followed by a slight decline in 2021 to around 6.42 billion USD. The values then recovered and showed moderate growth in the subsequent years.

Adjusted Current Assets

Adjusted current assets also exhibit a similar pattern to the current assets, increasing steadily from about 4.19 billion USD in 2018 to nearly 6.73 billion USD in 2023. A notable jump happened between 2019 and 2020, with values rising from approximately 4.63 billion to 6.46 billion USD. Although there was a minor decrease in 2021 to roughly 6.09 billion USD, the adjusted current assets rebounded in 2022 and 2023, reaching slightly over 6.72 billion USD.

Comparative Insights

The adjusted current assets values are consistently slightly lower than the current assets throughout the years, suggesting adjustments for items such as inventory valuation or other current asset components that may be more conservatively reported. Both metrics indicate growth and resilience, despite minor fluctuations in 2021, implying improved liquidity and asset management over the examined timeframe.

The analysis of the annual financial data reveals the following trends and insights:

Total Assets

Total assets have exhibited a consistent upward trend from 2018 to 2023. Starting at approximately $9.3 billion in 2018, total assets increased to nearly $16.0 billion by 2023. This reflects an overall growth of around 71% over the six-year period, averaging steady expansion in the asset base year over year.

Adjusted Total Assets

Adjusted total assets, which may represent total assets after certain adjustments or revaluations, also show consistent growth across the same timeframe. Beginning at approximately $10.7 billion in 2018, adjusted total assets increased to about $15.8 billion in 2023. The growth pattern mirrors that of total assets, with a total increase of nearly 48% during the period. The gap between adjusted and total assets narrows over time, indicating adjustments becoming less significant or the measures converging.

Overall Trends and Insights

Both total and adjusted total assets demonstrate steady expansion, suggesting sustained investment or accumulation of resources by the company. The regular increases year-over-year indicate effective asset growth management. The difference between the adjusted and total asset values consistently remains positive but diminishes proportionally, potentially reflecting changes in accounting policies or asset revaluation practices.

Current Liabilities

The current liabilities exhibited a consistent upward trend over the six-year period. Starting at approximately 5.03 billion USD in the year ending August 2018, the figure rose each year, reaching a peak of around 8.59 billion USD by August 2022. In the most recent year ending August 2023, current liabilities showed a slight decrease to approximately 8.51 billion USD. This suggests a general increase in the company's short-term obligations, with a minor reduction in the final year observed.

Adjusted Current Liabilities

Adjusted current liabilities closely mirror the trend of current liabilities, with values slightly lower by a small margin each year. Beginning at about 5.01 billion USD in 2018, the adjusted figure consistently increased annually to roughly 8.55 billion USD in 2022. In 2023, a decrease similar to current liabilities was noted, with the amount reducing to approximately 8.47 billion USD. This parallel movement indicates that adjustments made to current liabilities did not significantly alter the overall trajectory of short-term obligations.

Overall Trends and Insights

Throughout the analyzed period, both current and adjusted current liabilities grew substantially, nearly doubling over five years before leveling off and slightly declining in the most recent year. The growth suggests expanding operational or financing activities requiring increased short-term funding or obligations. The slight decline at the end of the period could indicate improved liquidity management or a strategic reduction in short-term debt. The close alignment between current and adjusted current liabilities implies that adjustments applied are consistent and do not significantly distort the underlying liability trends.

The analysis of the annual financial data reveals a consistent upward trend in both total liabilities and adjusted total liabilities over the examined periods.

Total Liabilities

This financial metric has increased steadily from approximately $10.87 billion in 2018 to around $20.34 billion in 2023. The growth demonstrates a continuous accumulation of obligations, rising by nearly 87% over the six-year period. This upward trajectory indicates an expanding scale of liabilities, which may reflect increased borrowing or other financial obligations.

Adjusted Total Liabilities

Similarly, adjusted total liabilities follow a comparable increasing pattern, beginning at about $12.41 billion in 2018 and reaching close to $19.76 billion in 2023. The adjusted liabilities consistently remain higher than the unadjusted totals, suggesting the inclusion of additional considerations or accounting adjustments. The increase over the years, though steady, is proportionally smaller than that of total liabilities, showing an approximate 59% rise, which may reflect changes in the calculation or classification methodologies.

Overall, the data depicts a significant expansion in the company's liabilities over the analysis period. This growth trend necessitates careful management to ensure that the increasing debt levels remain sustainable relative to the company's operational capacity and financial health.

The financial data indicates a consistently negative stockholders’ equity position over the six-year period analyzed. Both the reported stockholders’ deficit and the adjusted stockholders’ deficit remain in substantial negative territory throughout.

Stockholders’ Deficit

The stockholders’ deficit shows considerable fluctuations. Initially, it was at -1,520,355 thousand US dollars in 2018 and increased in magnitude to -1,713,851 thousand in 2019. A noticeable improvement occurred in 2020 with the deficit nearly halving to -877,977 thousand. However, this improvement was short-lived as the deficit widened again in 2021 to -1,797,536 thousand, followed by a sharp increase in 2022 to -3,538,913 thousand, and further deteriorating to -4,349,894 thousand in 2023.

Adjusted Stockholders’ Deficit

A similar trend is observed in the adjusted stockholders’ deficit, which also remained negative over the entire time frame. From -1,696,046 thousand in 2018, it slightly worsened in 2019 to -1,790,822 thousand, then improved sharply to -866,278 thousand in 2020. Post 2020, the adjusted deficit increased to -1,792,936 thousand in 2021 before escalating again to -3,026,881 thousand in 2022 and further to -3,907,563 thousand in 2023.

Overall, the data reveals a pattern of volatility, with a temporary improvement around 2020, but a marked and sustained deterioration in the company's net equity position from 2021 onwards. This decline could be indicative of increased liabilities, reduced assets, or accumulated losses during the latter years. The widening deficits suggest financial challenges that may require strategic attention to restore stockholders’ equity to a healthier range.

Total Reported Debt

The total reported debt shows a generally increasing trend over the period analyzed. Starting at approximately 5.16 billion US dollars in 2018, the debt slightly increased each year, peaking at nearly 7.96 billion US dollars in 2023. There was a minor decline between 2020 and 2021, but overall the debt burden grew significantly by over 54% from 2018 to 2023.

Stockholders’ Deficit

The stockholders’ deficit remained negative throughout the period, indicating liabilities exceeded equity consistently. The deficit deepened from about -1.52 billion in 2018 to nearly -4.35 billion in 2023. Fluctuations are present; notably, the deficit narrowed in 2020 but widened substantially again afterward, reaching its highest negative value in 2023. This points to ongoing financial challenges in equity capital.

Total Reported Capital

Total reported capital showed irregular movement. It started at 3.64 billion in 2018, increased to a peak of approximately 4.86 billion in 2020, then declined sharply in the following two years to approximately 2.89 billion in 2022, before rising again to 3.61 billion in 2023. The trend indicates volatility in reported capital with no consistent growth or decline pattern.

Adjusted Total Debt

Adjusted total debt figures follow a similar upward trajectory to reported debt but at higher absolute values. Starting from about 7.01 billion in 2018, the adjusted debt increased steadily each year, reaching approximately 11.13 billion in 2023. This adjustment amplifies the apparent leverage and emphasizes that debt levels have substantially grown over the six-year span.

Adjusted Stockholders’ Deficit

The adjusted stockholders’ deficit remains negative throughout, mirroring the reported deficit trend but with slightly larger absolute values. After a moderate improvement in 2020, the deficit deepened again, moving from around -1.70 billion in 2018 to nearly -3.91 billion in 2023. Despite some cyclical improvement, the overall movement reflects worsening equity positions under adjusted measures.

Adjusted Total Capital

Adjusted total capital shows general growth over the period, beginning at approximately 5.32 billion in 2018 and rising to about 7.22 billion by 2023. There is a peak in 2020 around 7.60 billion followed by a slight dip over the next two years. This trend signifies moderate strengthening of capital when considering adjustments, contrasting with more volatile reported capital figures.

The financial data reveals a consistent upward trend in both net income and adjusted net income over the analyzed six-year period.

Net income

Net income increased steadily from 1,337,536 thousand US dollars in 2018 to 2,528,426 thousand US dollars in 2023. This represents a significant growth trajectory with the highest year-over-year increase observed between 2020 and 2021, where net income rose by approximately 25.3%. Following this, the growth continued but at a somewhat moderated pace from 2021 to 2023.

Adjusted net income

Adjusted net income also exhibited a consistent upward movement, rising from 1,195,232 thousand US dollars in 2018 to a peak of 2,944,326 thousand US dollars in 2022 before a slight decline to 2,574,278 thousand US dollars in 2023. The adjusted figure shows more volatility compared to net income, particularly evident with the sharp increase between 2021 and 2022 followed by a noticeable decrease the subsequent year.

Comparative insights

Adjusted net income generally tracks above net income throughout the period, which may indicate the exclusion of certain expenses or one-time items that impact the reported net income. The fluctuations in adjusted net income suggest that non-recurring adjustments had a variable but notable effect on reported profitability, especially in the latest years assessed.