Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
AutoZone Inc., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | AutoZone Inc. debt to capital ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | AutoZone Inc. debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | AutoZone Inc. debt to assets ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | AutoZone Inc. debt to assets ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | AutoZone Inc. interest coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | AutoZone Inc. fixed charge coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Debt to Equity
AutoZone Inc., debt to equity calculation, comparison to benchmarks
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | Aug 25, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current portion of finance lease liabilities | 86,916) | 92,877) | 89,932) | 67,498) | 56,246) | 52,290) | |
| Long-term debt | 7,668,549) | 6,122,092) | 5,269,820) | 5,513,371) | 5,206,344) | 5,005,930) | |
| Finance lease liabilities, less current portion | 200,702) | 217,428) | 186,122) | 155,855) | 123,659) | 102,013) | |
| Total debt | 7,956,167) | 6,432,397) | 5,545,874) | 5,736,724) | 5,386,249) | 5,160,233) | |
| Stockholders’ deficit | (4,349,894) | (3,538,913) | (1,797,536) | (877,977) | (1,713,851) | (1,520,355) | |
| Solvency Ratio | |||||||
| Debt to equity1 | — | — | — | — | — | — | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Amazon.com Inc. | 0.39 | 0.59 | 0.54 | 0.66 | 0.83 | — | |
| Home Depot Inc. | 27.65 | — | 11.29 | — | — | — | |
| Lowe’s Cos. Inc. | — | — | 15.16 | 9.79 | 4.45 | — | |
| TJX Cos. Inc. | 0.53 | 0.56 | 1.04 | 0.38 | 0.44 | — | |
| Debt to Equity, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 0.82 | 1.06 | 0.93 | 1.17 | 1.44 | — | |
| Debt to Equity, Industry | |||||||
| Consumer Discretionary | 1.42 | 1.61 | 1.56 | 2.26 | 2.44 | — | |
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).
1 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ deficit
= 7,956,167 ÷ -4,349,894 = —
2 Click competitor name to see calculations.
Debt to Equity (including Operating Lease Liability)
AutoZone Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | Aug 25, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current portion of finance lease liabilities | 86,916) | 92,877) | 89,932) | 67,498) | 56,246) | 52,290) | |
| Long-term debt | 7,668,549) | 6,122,092) | 5,269,820) | 5,513,371) | 5,206,344) | 5,005,930) | |
| Finance lease liabilities, less current portion | 200,702) | 217,428) | 186,122) | 155,855) | 123,659) | 102,013) | |
| Total debt | 7,956,167) | 6,432,397) | 5,545,874) | 5,736,724) | 5,386,249) | 5,160,233) | |
| Current portion of operating lease liabilities | 257,256) | 243,407) | 236,568) | 223,846) | —) | —) | |
| Operating lease liabilities, less current portion | 2,917,046) | 2,837,973) | 2,632,842) | 2,501,560) | —) | —) | |
| Total debt (including operating lease liability) | 11,130,469) | 9,513,777) | 8,415,284) | 8,462,130) | 5,386,249) | 5,160,233) | |
| Stockholders’ deficit | (4,349,894) | (3,538,913) | (1,797,536) | (877,977) | (1,713,851) | (1,520,355) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | — | — | — | — | — | — | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Amazon.com Inc. | 0.77 | 1.06 | 0.96 | 1.08 | 1.25 | — | |
| Home Depot Inc. | 32.24 | — | 13.16 | — | — | — | |
| Lowe’s Cos. Inc. | — | — | 18.24 | 12.04 | 4.45 | — | |
| TJX Cos. Inc. | 2.00 | 2.08 | 2.66 | 1.93 | 0.44 | — | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Consumer Discretionary Distribution & Retail | 1.31 | 1.67 | 1.46 | 1.76 | 1.82 | — | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Consumer Discretionary | 1.77 | 2.00 | 1.93 | 2.69 | 2.70 | — | |
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).
1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ deficit
= 11,130,469 ÷ -4,349,894 = —
2 Click competitor name to see calculations.
Debt to Capital
AutoZone Inc., debt to capital calculation, comparison to benchmarks
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | Aug 25, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current portion of finance lease liabilities | 86,916) | 92,877) | 89,932) | 67,498) | 56,246) | 52,290) | |
| Long-term debt | 7,668,549) | 6,122,092) | 5,269,820) | 5,513,371) | 5,206,344) | 5,005,930) | |
| Finance lease liabilities, less current portion | 200,702) | 217,428) | 186,122) | 155,855) | 123,659) | 102,013) | |
| Total debt | 7,956,167) | 6,432,397) | 5,545,874) | 5,736,724) | 5,386,249) | 5,160,233) | |
| Stockholders’ deficit | (4,349,894) | (3,538,913) | (1,797,536) | (877,977) | (1,713,851) | (1,520,355) | |
| Total capital | 3,606,273) | 2,893,484) | 3,748,338) | 4,858,747) | 3,672,398) | 3,639,878) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 2.21 | 2.22 | 1.48 | 1.18 | 1.47 | 1.42 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Amazon.com Inc. | 0.28 | 0.37 | 0.35 | 0.40 | 0.45 | — | |
| Home Depot Inc. | 0.97 | 1.04 | 0.92 | 1.11 | 1.07 | — | |
| Lowe’s Cos. Inc. | 1.72 | 1.24 | 0.94 | 0.91 | 0.82 | — | |
| TJX Cos. Inc. | 0.35 | 0.36 | 0.51 | 0.27 | 0.31 | — | |
| Debt to Capital, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 0.45 | 0.51 | 0.48 | 0.54 | 0.59 | — | |
| Debt to Capital, Industry | |||||||
| Consumer Discretionary | 0.59 | 0.62 | 0.61 | 0.69 | 0.71 | — | |
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).
1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 7,956,167 ÷ 3,606,273 = 2.21
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | AutoZone Inc. debt to capital ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Debt to Capital (including Operating Lease Liability)
AutoZone Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | Aug 25, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current portion of finance lease liabilities | 86,916) | 92,877) | 89,932) | 67,498) | 56,246) | 52,290) | |
| Long-term debt | 7,668,549) | 6,122,092) | 5,269,820) | 5,513,371) | 5,206,344) | 5,005,930) | |
| Finance lease liabilities, less current portion | 200,702) | 217,428) | 186,122) | 155,855) | 123,659) | 102,013) | |
| Total debt | 7,956,167) | 6,432,397) | 5,545,874) | 5,736,724) | 5,386,249) | 5,160,233) | |
| Current portion of operating lease liabilities | 257,256) | 243,407) | 236,568) | 223,846) | —) | —) | |
| Operating lease liabilities, less current portion | 2,917,046) | 2,837,973) | 2,632,842) | 2,501,560) | —) | —) | |
| Total debt (including operating lease liability) | 11,130,469) | 9,513,777) | 8,415,284) | 8,462,130) | 5,386,249) | 5,160,233) | |
| Stockholders’ deficit | (4,349,894) | (3,538,913) | (1,797,536) | (877,977) | (1,713,851) | (1,520,355) | |
| Total capital (including operating lease liability) | 6,780,575) | 5,974,864) | 6,617,748) | 7,584,153) | 3,672,398) | 3,639,878) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 1.64 | 1.59 | 1.27 | 1.12 | 1.47 | 1.42 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Amazon.com Inc. | 0.43 | 0.51 | 0.49 | 0.52 | 0.56 | — | |
| Home Depot Inc. | 0.97 | 1.04 | 0.93 | 1.09 | 1.07 | — | |
| Lowe’s Cos. Inc. | 1.60 | 1.20 | 0.95 | 0.92 | 0.82 | — | |
| TJX Cos. Inc. | 0.67 | 0.68 | 0.73 | 0.66 | 0.31 | — | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Consumer Discretionary Distribution & Retail | 0.57 | 0.63 | 0.59 | 0.64 | 0.65 | — | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Consumer Discretionary | 0.64 | 0.67 | 0.66 | 0.73 | 0.73 | — | |
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).
1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 11,130,469 ÷ 6,780,575 = 1.64
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | AutoZone Inc. debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets
AutoZone Inc., debt to assets calculation, comparison to benchmarks
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | Aug 25, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current portion of finance lease liabilities | 86,916) | 92,877) | 89,932) | 67,498) | 56,246) | 52,290) | |
| Long-term debt | 7,668,549) | 6,122,092) | 5,269,820) | 5,513,371) | 5,206,344) | 5,005,930) | |
| Finance lease liabilities, less current portion | 200,702) | 217,428) | 186,122) | 155,855) | 123,659) | 102,013) | |
| Total debt | 7,956,167) | 6,432,397) | 5,545,874) | 5,736,724) | 5,386,249) | 5,160,233) | |
| Total assets | 15,985,878) | 15,275,043) | 14,516,199) | 14,423,872) | 9,895,913) | 9,346,980) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.50 | 0.42 | 0.38 | 0.40 | 0.54 | 0.55 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Amazon.com Inc. | 0.15 | 0.19 | 0.18 | 0.19 | 0.23 | — | |
| Home Depot Inc. | 0.57 | 0.56 | 0.53 | 0.61 | 0.66 | — | |
| Lowe’s Cos. Inc. | 0.78 | 0.55 | 0.47 | 0.49 | 0.47 | — | |
| TJX Cos. Inc. | 0.12 | 0.12 | 0.20 | 0.09 | 0.16 | — | |
| Debt to Assets, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 0.24 | 0.25 | 0.24 | 0.26 | 0.31 | — | |
| Debt to Assets, Industry | |||||||
| Consumer Discretionary | 0.35 | 0.36 | 0.37 | 0.42 | 0.44 | — | |
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).
1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 7,956,167 ÷ 15,985,878 = 0.50
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | AutoZone Inc. debt to assets ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets (including Operating Lease Liability)
AutoZone Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | Aug 25, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current portion of finance lease liabilities | 86,916) | 92,877) | 89,932) | 67,498) | 56,246) | 52,290) | |
| Long-term debt | 7,668,549) | 6,122,092) | 5,269,820) | 5,513,371) | 5,206,344) | 5,005,930) | |
| Finance lease liabilities, less current portion | 200,702) | 217,428) | 186,122) | 155,855) | 123,659) | 102,013) | |
| Total debt | 7,956,167) | 6,432,397) | 5,545,874) | 5,736,724) | 5,386,249) | 5,160,233) | |
| Current portion of operating lease liabilities | 257,256) | 243,407) | 236,568) | 223,846) | —) | —) | |
| Operating lease liabilities, less current portion | 2,917,046) | 2,837,973) | 2,632,842) | 2,501,560) | —) | —) | |
| Total debt (including operating lease liability) | 11,130,469) | 9,513,777) | 8,415,284) | 8,462,130) | 5,386,249) | 5,160,233) | |
| Total assets | 15,985,878) | 15,275,043) | 14,516,199) | 14,423,872) | 9,895,913) | 9,346,980) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.70 | 0.62 | 0.58 | 0.59 | 0.54 | 0.55 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Amazon.com Inc. | 0.29 | 0.33 | 0.31 | 0.31 | 0.34 | — | |
| Home Depot Inc. | 0.66 | 0.64 | 0.62 | 0.73 | 0.66 | — | |
| Lowe’s Cos. Inc. | 0.87 | 0.66 | 0.56 | 0.60 | 0.47 | — | |
| TJX Cos. Inc. | 0.45 | 0.44 | 0.50 | 0.47 | 0.16 | — | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Consumer Discretionary Distribution & Retail | 0.38 | 0.40 | 0.38 | 0.40 | 0.39 | — | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Consumer Discretionary | 0.44 | 0.45 | 0.45 | 0.50 | 0.48 | — | |
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).
1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 11,130,469 ÷ 15,985,878 = 0.70
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | AutoZone Inc. debt to assets ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
Financial Leverage
AutoZone Inc., financial leverage calculation, comparison to benchmarks
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | Aug 25, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Total assets | 15,985,878) | 15,275,043) | 14,516,199) | 14,423,872) | 9,895,913) | 9,346,980) | |
| Stockholders’ deficit | (4,349,894) | (3,538,913) | (1,797,536) | (877,977) | (1,713,851) | (1,520,355) | |
| Solvency Ratio | |||||||
| Financial leverage1 | — | — | — | — | — | — | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Amazon.com Inc. | 2.61 | 3.17 | 3.04 | 3.44 | 3.63 | — | |
| Home Depot Inc. | 48.94 | — | 21.39 | — | — | — | |
| Lowe’s Cos. Inc. | — | — | 32.52 | 20.02 | 9.47 | — | |
| TJX Cos. Inc. | 4.45 | 4.74 | 5.28 | 4.06 | 2.84 | — | |
| Financial Leverage, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 3.46 | 4.18 | 3.82 | 4.44 | 4.62 | — | |
| Financial Leverage, Industry | |||||||
| Consumer Discretionary | 4.04 | 4.43 | 4.25 | 5.41 | 5.56 | — | |
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).
1 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ deficit
= 15,985,878 ÷ -4,349,894 = —
2 Click competitor name to see calculations.
Interest Coverage
AutoZone Inc., interest coverage calculation, comparison to benchmarks
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | Aug 25, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income | 2,528,426) | 2,429,604) | 2,170,314) | 1,732,972) | 1,617,221) | 1,337,536) | |
| Add: Income tax expense | 639,188) | 649,487) | 578,876) | 483,542) | 414,112) | 298,793) | |
| Add: Interest expense, less capitalized interest | 318,426) | 197,686) | 200,754) | 206,854) | 192,200) | 180,163) | |
| Earnings before interest and tax (EBIT) | 3,486,040) | 3,276,777) | 2,949,944) | 2,423,368) | 2,223,533) | 1,816,492) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 10.95 | 16.58 | 14.69 | 11.72 | 11.57 | 10.08 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Amazon.com Inc. | 12.80 | -1.51 | 22.09 | 15.69 | 9.73 | — | |
| Home Depot Inc. | 14.90 | 17.14 | 13.60 | 13.25 | 14.85 | — | |
| Lowe’s Cos. Inc. | 8.79 | 13.49 | 9.88 | 8.83 | 6.21 | — | |
| TJX Cos. Inc. | 56.19 | 37.80 | 1.46 | 75.57 | 65.36 | — | |
| Interest Coverage, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 13.19 | 7.64 | 15.91 | 14.50 | 11.71 | — | |
| Interest Coverage, Industry | |||||||
| Consumer Discretionary | 10.61 | 7.74 | 10.83 | 6.26 | 9.85 | — | |
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).
1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 3,486,040 ÷ 318,426 = 10.95
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | AutoZone Inc. interest coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Fixed Charge Coverage
AutoZone Inc., fixed charge coverage calculation, comparison to benchmarks
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | Aug 25, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income | 2,528,426) | 2,429,604) | 2,170,314) | 1,732,972) | 1,617,221) | 1,337,536) | |
| Add: Income tax expense | 639,188) | 649,487) | 578,876) | 483,542) | 414,112) | 298,793) | |
| Add: Interest expense, less capitalized interest | 318,426) | 197,686) | 200,754) | 206,854) | 192,200) | 180,163) | |
| Earnings before interest and tax (EBIT) | 3,486,040) | 3,276,777) | 2,949,944) | 2,423,368) | 2,223,533) | 1,816,492) | |
| Add: Operating lease cost | 437,762) | 401,000) | 371,109) | 355,230) | 332,700) | 315,600) | |
| Earnings before fixed charges and tax | 3,923,802) | 3,677,777) | 3,321,053) | 2,778,598) | 2,556,233) | 2,132,092) | |
| Interest expense, less capitalized interest | 318,426) | 197,686) | 200,754) | 206,854) | 192,200) | 180,163) | |
| Operating lease cost | 437,762) | 401,000) | 371,109) | 355,230) | 332,700) | 315,600) | |
| Fixed charges | 756,188) | 598,686) | 571,863) | 562,084) | 524,900) | 495,763) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 5.19 | 6.14 | 5.81 | 4.94 | 4.87 | 4.30 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Amazon.com Inc. | 3.73 | 0.47 | 5.24 | 4.63 | 3.65 | — | |
| Home Depot Inc. | 9.07 | 9.94 | 8.97 | 8.26 | 7.80 | — | |
| Lowe’s Cos. Inc. | 5.77 | 8.02 | 6.05 | 5.04 | 3.68 | — | |
| TJX Cos. Inc. | 3.31 | 3.17 | 1.04 | 3.43 | 3.39 | — | |
| Fixed Charge Coverage, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 4.61 | 2.82 | 5.29 | 5.11 | 4.46 | — | |
| Fixed Charge Coverage, Industry | |||||||
| Consumer Discretionary | 4.73 | 3.37 | 5.01 | 3.19 | 4.32 | — | |
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).
1 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 3,923,802 ÷ 756,188 = 5.19
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | AutoZone Inc. fixed charge coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |