AutoZone Inc. (NYSE:AZO)

The annual financial data presents a comprehensive view of the asset composition and movements over six consecutive years. Several notable trends and observations can be made from the analysis of the data.

Cash and Cash Equivalents

There is significant volatility in cash and cash equivalents. The balance sharply increased in 2020, reaching over 1.7 billion, before declining substantially in 2021 and remaining lower in subsequent years. This indicates possible fluctuations in liquidity management or large cash inflows and outflows during this period.

Accounts Receivable

Accounts receivable showed a steady upward trend throughout the period, increasing from about 258 million to over 520 million, nearly doubling over six years. This consistent growth suggests increasing sales on credit or extended payment terms with customers.

Merchandise Inventories

Merchandise inventories exhibited continuous growth, rising from roughly 3.94 billion to approximately 5.76 billion. The substantial increase, especially from 2021 onward, may indicate expanding inventory levels to meet higher demand or preparation for growth.

Current Marketable Debt Securities

This balance exhibits some fluctuations but remains relatively stable overall. It peaked around 76 million in 2020 and decreased in the following years, possibly reflecting adjustments in short-term investment strategies or liquidity needs.

Other Current Assets

Other current assets remained fairly constant, with minor fluctuations around the 150 to 180 million range. This stability suggests no major changes in other short-term asset categories.

Current Assets

The total current assets reflect variability closely related to fluctuations in cash and cash equivalents and accounts receivable. After a sharp increase in 2020, current assets slightly decreased in 2021 but then stabilized and increased marginally in the following years, indicating management of working capital.

Property and Equipment, Net

Net property and equipment figures steadily increased, from approximately 4.2 billion to about 5.6 billion, indicating ongoing capital investment in fixed assets and expansion of operational capacity.

Operating Lease Right-of-Use Assets

First appearing in 2020, this category consistently increased from around 2.58 billion to nearly 3 billion by 2023. This reflects the adoption and growth of lease obligations under accounting standards that require recognition of lease assets.

Goodwill

The goodwill balance remained unchanged at around 303 million throughout the period, suggesting no significant acquisitions or impairment related to goodwill.

Deferred Income Taxes

Deferred income taxes increased significantly from approximately 27 million to 86 million, more than tripling over the period. This growth could be related to timing differences in tax recognition or increased taxable temporary differences.

Long-Term Marketable Debt Securities

Long-term marketable securities showed slight fluctuations but remained stable overall, with figures around 70 to 82 million, indicating consistent investment levels in longer-term securities.

Other Long-Term Assets

This category increased from roughly 68 million to 141 million, indicating growth in other long-term investments or non-current assets over the period.

Long-Term Assets

Total long-term assets rose steadily from about 4.7 billion to approximately 9.2 billion, driven by increases in property and equipment, operating lease assets, deferred taxes, and other long-term asset categories. This reflects ongoing capital expenditure, lease capitalization, and potential deferred tax recognition.

Total Assets

Total assets experienced significant growth, increasing from roughly 9.35 billion to nearly 16 billion. The most pronounced increase occurred between 2019 and 2020, then growth continued steadily. This increase is driven largely by expanded current and long-term assets, reflecting overall business growth and asset accumulation.