Return on Equity (ROE)
since 2005
Calculation
AutoZone Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income1 | ÷ | Stockholders’ equity (deficit)1 | |
|---|---|---|---|---|---|---|---|
| Aug 26, 2023 | — | = | 100 | × | 2,528,426) | ÷ | (4,349,894) |
| Aug 27, 2022 | — | = | 100 | × | 2,429,604) | ÷ | (3,538,913) |
| Aug 28, 2021 | — | = | 100 | × | 2,170,314) | ÷ | (1,797,536) |
| Aug 29, 2020 | — | = | 100 | × | 1,732,972) | ÷ | (877,977) |
| Aug 31, 2019 | — | = | 100 | × | 1,617,221) | ÷ | (1,713,851) |
| Aug 25, 2018 | — | = | 100 | × | 1,337,536) | ÷ | (1,520,355) |
| Aug 26, 2017 | — | = | 100 | × | 1,280,869) | ÷ | (1,428,377) |
| Aug 27, 2016 | — | = | 100 | × | 1,241,007) | ÷ | (1,787,538) |
| Aug 29, 2015 | — | = | 100 | × | 1,160,241) | ÷ | (1,701,390) |
| Aug 30, 2014 | — | = | 100 | × | 1,069,744) | ÷ | (1,621,857) |
| Aug 31, 2013 | — | = | 100 | × | 1,016,480) | ÷ | (1,687,319) |
| Aug 25, 2012 | — | = | 100 | × | 930,373) | ÷ | (1,548,025) |
| Aug 27, 2011 | — | = | 100 | × | 848,974) | ÷ | (1,254,232) |
| Aug 28, 2010 | — | = | 100 | × | 738,311) | ÷ | (738,765) |
| Aug 29, 2009 | — | = | 100 | × | 657,049) | ÷ | (433,074) |
| Aug 30, 2008 | 279.34% | = | 100 | × | 641,606) | ÷ | 229,687) |
| Aug 25, 2007 | 147.74% | = | 100 | × | 595,672) | ÷ | 403,200) |
| Aug 26, 2006 | 121.24% | = | 100 | × | 569,275) | ÷ | 469,528) |
| Aug 27, 2005 | 146.04% | = | 100 | × | 571,019) | ÷ | 391,007) |
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), 10-K (reporting date: 2017-08-26), 10-K (reporting date: 2016-08-27), 10-K (reporting date: 2015-08-29), 10-K (reporting date: 2014-08-30), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-25), 10-K (reporting date: 2011-08-27), 10-K (reporting date: 2010-08-28), 10-K (reporting date: 2009-08-29), 10-K (reporting date: 2008-08-30), 10-K (reporting date: 2007-08-25), 10-K (reporting date: 2006-08-26), 10-K (reporting date: 2005-08-27).
1 US$ in thousands
The net income of the company demonstrates a consistent upward trend over the analyzed period. Starting from approximately $571 million in 2005, net income increases steadily each year, reaching around $2.53 billion by 2023. This reflects substantial growth in profitability over nearly two decades, with occasional acceleration, notably after 2018 where the increments become more pronounced.
In contrast, the stockholders’ equity exhibits significant volatility and a generally negative trend after 2007. Beginning with a positive value of $391 million in 2005, equity fluctuates but declines steeply post-2007, turning negative in 2009 and continuing to decline to about -$4.35 billion by 2023. This persistent negative equity position indicates the company might have accumulated losses, repurchased shares, or experienced other factors eroding shareholder equity over time.
The Return on Equity (ROE) is reported only for the early years and shows exceptionally high values, ranging from approximately 121% to 279% between 2005 and 2008. The extremely high ROE figures during these years are likely due to the shrinking or negative equity base, which amplifies the ratio. The absence of reported ROE values after 2008 could be related to the negative or unstable equity figures, which complicate meaningful ROE calculation and interpretation.
- Net Income
- Shows steady growth, more than quadrupling from 2005 to 2023. This reflects strong profitability and potential increases in sales, margins, or operational efficiency.
- Stockholders’ Equity
- Transitions from positive to negative early in the period and deteriorates further, signaling substantial equity depletion. Negative equity raises concerns about financial stability and capital structure.
- Return on Equity (ROE)
- Extremely high in initial years likely due to low or negative equity, no comparable data for later years possibly due to negative equity making ROE less relevant or reliable.
Overall, the company demonstrates robust profit growth, but this is accompanied by a concerning decline in stockholders’ equity, resulting in a complex financial profile. The divergence between rising net income and falling equity suggests that leverage or share buybacks might be factors at play, impacting the company’s financial leverage and risk profile.
Comparison to Competitors
AutoZone Inc., ROE, long-term trends, comparison to competitors
| AutoZone Inc. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | TJX Cos. Inc. | |
|---|---|---|---|---|---|
| Aug 26, 2023 | — | 15.07% | 1,095.07% | — | 54.97% |
| Aug 27, 2022 | — | -1.86% | — | — | 54.69% |
| Aug 28, 2021 | — | 24.13% | 390.00% | 406.05% | 1.55% |
| Aug 29, 2020 | — | 22.84% | — | 217.09% | 55.01% |
| Aug 31, 2019 | — | 18.67% | — | 63.50% | 60.61% |
| Aug 25, 2018 | — | 23.13% | 593.54% | 58.69% | 50.66% |
| Aug 26, 2017 | — | 10.95% | 183.64% | 48.07% | 50.95% |
| Aug 27, 2016 | — | 12.29% | 110.97% | 33.26% | 52.88% |
| Aug 29, 2015 | — | 4.45% | 68.06% | 27.07% | 51.95% |
| Aug 30, 2014 | — | -2.24% | 43.00% | 19.29% | 50.53% |
| Aug 31, 2013 | — | 2.81% | 25.51% | 14.14% | 52.01% |
| Aug 25, 2012 | — | -0.48% | 21.70% | 11.12% | 46.62% |
| Aug 27, 2011 | — | 8.13% | 17.67% | 11.10% | 43.33% |
| Aug 28, 2010 | — | 16.78% | 13.72% | 9.35% | 42.00% |
| Aug 29, 2009 | — | 17.16% | 12.71% | 12.16% | 41.26% |
| Aug 30, 2008 | 279.34% | 24.14% | 24.81% | 17.45% | 36.21% |
| Aug 25, 2007 | 147.74% | 39.77% | 23.02% | 19.75% | 32.23% |
| Aug 26, 2006 | 121.24% | 44.08% | 21.70% | 19.32% | 36.48% |
| Aug 27, 2005 | 146.04% | 145.93% | 20.70% | 18.86% | 40.17% |
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), 10-K (reporting date: 2017-08-26), 10-K (reporting date: 2016-08-27), 10-K (reporting date: 2015-08-29), 10-K (reporting date: 2014-08-30), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-25), 10-K (reporting date: 2011-08-27), 10-K (reporting date: 2010-08-28), 10-K (reporting date: 2009-08-29), 10-K (reporting date: 2008-08-30), 10-K (reporting date: 2007-08-25), 10-K (reporting date: 2006-08-26), 10-K (reporting date: 2005-08-27).
Comparison to Sector (Consumer Discretionary Distribution & Retail)
AutoZone Inc., ROE, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| AutoZone Inc. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Aug 26, 2023 | — | 29.39% |
| Aug 27, 2022 | — | 17.48% |
| Aug 28, 2021 | — | 35.05% |
| Aug 29, 2020 | — | 40.86% |
| Aug 31, 2019 | — | 40.77% |
| Aug 25, 2018 | — | 44.19% |
| Aug 26, 2017 | — | 38.11% |
| Aug 27, 2016 | — | 37.81% |
| Aug 29, 2015 | — | 32.09% |
| Aug 30, 2014 | — | 24.32% |
| Aug 31, 2013 | — | 19.26% |
| Aug 25, 2012 | — | 15.66% |
| Aug 27, 2011 | — | 15.30% |
| Aug 28, 2010 | — | 14.12% |
| Aug 29, 2009 | — | 14.43% |
| Aug 30, 2008 | 279.34% | 22.32% |
| Aug 25, 2007 | 147.74% | 22.78% |
| Aug 26, 2006 | 121.24% | 21.78% |
| Aug 27, 2005 | 146.04% | 21.81% |
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), 10-K (reporting date: 2017-08-26), 10-K (reporting date: 2016-08-27), 10-K (reporting date: 2015-08-29), 10-K (reporting date: 2014-08-30), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-25), 10-K (reporting date: 2011-08-27), 10-K (reporting date: 2010-08-28), 10-K (reporting date: 2009-08-29), 10-K (reporting date: 2008-08-30), 10-K (reporting date: 2007-08-25), 10-K (reporting date: 2006-08-26), 10-K (reporting date: 2005-08-27).
Comparison to Industry (Consumer Discretionary)
AutoZone Inc., ROE, long-term trends, comparison to industry (consumer discretionary)
| AutoZone Inc. | Consumer Discretionary | |
|---|---|---|
| Aug 26, 2023 | — | 30.61% |
| Aug 27, 2022 | — | 21.65% |
| Aug 28, 2021 | — | 34.37% |
| Aug 29, 2020 | — | 25.29% |
| Aug 31, 2019 | — | 34.62% |
| Aug 25, 2018 | — | 34.33% |
| Aug 26, 2017 | — | 22.85% |
| Aug 27, 2016 | — | 28.74% |
| Aug 29, 2015 | — | 29.03% |
| Aug 30, 2014 | — | 20.60% |
| Aug 31, 2013 | — | 20.34% |
| Aug 25, 2012 | — | 21.97% |
| Aug 27, 2011 | — | 34.92% |
| Aug 28, 2010 | — | 24.34% |
| Aug 29, 2009 | — | 25.32% |
| Aug 30, 2008 | 279.34% | 1.64% |
| Aug 25, 2007 | 147.74% | 16.06% |
| Aug 26, 2006 | 121.24% | 3.84% |
| Aug 27, 2005 | 146.04% | 19.92% |
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), 10-K (reporting date: 2017-08-26), 10-K (reporting date: 2016-08-27), 10-K (reporting date: 2015-08-29), 10-K (reporting date: 2014-08-30), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-25), 10-K (reporting date: 2011-08-27), 10-K (reporting date: 2010-08-28), 10-K (reporting date: 2009-08-29), 10-K (reporting date: 2008-08-30), 10-K (reporting date: 2007-08-25), 10-K (reporting date: 2006-08-26), 10-K (reporting date: 2005-08-27).