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
Net income exhibited a consistent and significant upward trajectory from 2005 through 2023. Starting at $571 million in 2005, earnings grew steadily to reach $2.5 billion by 2023, reflecting a substantial long-term increase in absolute profitability.
- Net Income Trends
- The growth in net income was nearly linear for the first decade, followed by an acceleration between 2018 and 2023. In the final five years of the period, net income rose from $1.3 billion to $2.5 billion, indicating strong operational performance and scaling of profit margins.
- Stockholders' Equity Position
- A fundamental shift in the capital structure is observed between 2005 and 2009. Stockholders' equity began as a positive balance of $391 million in 2005 but declined rapidly, entering a deficit state in 2009. This negative equity position deepened progressively over the subsequent 14 years, reaching a deficit of approximately $4.3 billion by 2023. Such a trend is typically indicative of aggressive capital return strategies, such as large-scale share repurchases, which exceed the company's retained earnings and contributed equity.
- Return on Equity (ROE) Interpretation
- During the period when equity remained positive (2005–2008), ROE was exceptionally high, peaking at 279.34% in 2008. This indicates that the company generated very high returns relative to a shrinking equity base. Following the transition to negative stockholders' equity in 2009, the ROE metric ceased to be reported, as the ratio becomes mathematically distorted and loses its analytical utility when the equity denominator is negative.
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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 | — | 29.93% |
| Aug 27, 2022 | — | 20.78% |
| Aug 28, 2021 | — | 33.71% |
| Aug 29, 2020 | — | 24.49% |
| 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).