Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
AutoZone Inc., short-term (operating) activity 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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | AutoZone Inc. inventory turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | AutoZone Inc. receivables turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | AutoZone Inc. payables turnover ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | AutoZone Inc. number of days of inventory outstanding deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | AutoZone Inc. operating cycle deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | AutoZone Inc. number of days of payables outstanding increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | AutoZone Inc. cash conversion cycle improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Inventory Turnover
AutoZone Inc., inventory turnover 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) | |||||||
| Cost of sales, including warehouse and delivery expenses | 8,386,787) | 7,779,580) | 6,911,800) | 5,861,214) | 5,498,742) | 5,247,331) | |
| Merchandise inventories | 5,764,143) | 5,638,004) | 4,639,813) | 4,473,282) | 4,319,113) | 3,943,670) | |
| Short-term Activity Ratio | |||||||
| Inventory turnover1 | 1.45 | 1.38 | 1.49 | 1.31 | 1.27 | 1.33 | |
| Benchmarks | |||||||
| Inventory Turnover, Competitors2 | |||||||
| Amazon.com Inc. | 9.15 | 8.40 | 8.34 | 9.80 | 8.08 | — | |
| Home Depot Inc. | 4.20 | 4.55 | 5.25 | 5.00 | 5.10 | — | |
| Lowe’s Cos. Inc. | 3.50 | 3.65 | 3.71 | 3.73 | 3.85 | — | |
| TJX Cos. Inc. | 6.21 | 5.82 | 5.66 | 6.13 | 6.08 | — | |
| Inventory Turnover, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 6.18 | 6.10 | 6.36 | 6.83 | 6.07 | — | |
| Inventory Turnover, Industry | |||||||
| Consumer Discretionary | 7.06 | 6.74 | 7.06 | 7.55 | 7.84 | — | |
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
Inventory turnover = Cost of sales, including warehouse and delivery expenses ÷ Merchandise inventories
= 8,386,787 ÷ 5,764,143 = 1.45
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | AutoZone Inc. inventory turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Receivables Turnover
AutoZone Inc., receivables turnover 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 sales | 17,457,209) | 16,252,230) | 14,629,585) | 12,631,967) | 11,863,743) | 11,221,077) | |
| Accounts receivable | 520,385) | 504,886) | 378,392) | 364,774) | 308,995) | 258,136) | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 33.55 | 32.19 | 38.66 | 34.63 | 38.39 | 43.47 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Amazon.com Inc. | 16.86 | 19.32 | 23.26 | 26.09 | 22.26 | — | |
| Home Depot Inc. | 47.45 | 44.12 | 44.15 | 52.34 | 55.89 | — | |
| Lowe’s Cos. Inc. | — | — | — | — | — | — | |
| TJX Cos. Inc. | 88.70 | 93.79 | 69.69 | 108.00 | 112.54 | — | |
| Receivables Turnover, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 23.15 | 26.52 | 30.59 | 35.28 | 33.53 | — | |
| Receivables Turnover, Industry | |||||||
| Consumer Discretionary | 17.99 | 18.02 | 21.14 | 21.80 | 21.73 | — | |
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
Receivables turnover = Net sales ÷ Accounts receivable
= 17,457,209 ÷ 520,385 = 33.55
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | AutoZone Inc. receivables turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Payables Turnover
AutoZone Inc., payables turnover 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) | |||||||
| Cost of sales, including warehouse and delivery expenses | 8,386,787) | 7,779,580) | 6,911,800) | 5,861,214) | 5,498,742) | 5,247,331) | |
| Accounts payable | 7,201,281) | 7,301,347) | 6,013,924) | 5,156,324) | 4,864,912) | 4,409,372) | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 1.16 | 1.07 | 1.15 | 1.14 | 1.13 | 1.19 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Amazon.com Inc. | 3.59 | 3.63 | 3.46 | 3.22 | 3.51 | — | |
| Home Depot Inc. | 9.14 | 7.45 | 7.52 | 9.33 | 9.16 | — | |
| Lowe’s Cos. Inc. | 6.16 | 5.65 | 5.51 | 6.42 | 5.85 | — | |
| TJX Cos. Inc. | 9.53 | 7.77 | 5.09 | 11.17 | 10.53 | — | |
| Payables Turnover, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 4.61 | 4.48 | 4.19 | 4.25 | 4.75 | — | |
| Payables Turnover, Industry | |||||||
| Consumer Discretionary | 5.23 | 4.84 | 4.67 | 4.77 | 5.59 | — | |
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
Payables turnover = Cost of sales, including warehouse and delivery expenses ÷ Accounts payable
= 8,386,787 ÷ 7,201,281 = 1.16
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | AutoZone Inc. payables turnover ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
Working Capital Turnover
AutoZone Inc., working capital turnover 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 assets | 6,779,426) | 6,627,984) | 6,415,303) | 6,811,872) | 5,028,685) | 4,635,869) | |
| Less: Current liabilities | 8,511,856) | 8,588,393) | 7,369,754) | 6,283,091) | 5,512,141) | 5,028,681) | |
| Working capital | (1,732,430) | (1,960,409) | (954,451) | 528,781) | (483,456) | (392,812) | |
| Net sales | 17,457,209) | 16,252,230) | 14,629,585) | 12,631,967) | 11,863,743) | 11,221,077) | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | — | — | — | 23.89 | — | — | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Amazon.com Inc. | 77.32 | — | 24.33 | 60.82 | 32.92 | — | |
| Home Depot Inc. | 16.81 | 417.56 | 24.87 | 76.81 | 59.68 | — | |
| Lowe’s Cos. Inc. | 50.26 | 245.54 | 24.92 | 530.50 | — | — | |
| TJX Cos. Inc. | 23.22 | 17.40 | 6.51 | 23.97 | 13.27 | — | |
| Working Capital Turnover, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 42.11 | — | 21.83 | 63.17 | 38.37 | — | |
| Working Capital Turnover, Industry | |||||||
| Consumer Discretionary | 16.27 | 19.61 | 11.06 | 13.40 | 33.38 | — | |
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
Working capital turnover = Net sales ÷ Working capital
= 17,457,209 ÷ -1,732,430 = —
2 Click competitor name to see calculations.
Average Inventory Processing Period
AutoZone Inc., average inventory processing period 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 | |||||||
| Inventory turnover | 1.45 | 1.38 | 1.49 | 1.31 | 1.27 | 1.33 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average inventory processing period1 | 251 | 265 | 245 | 279 | 287 | 274 | |
| Benchmarks (no. days) | |||||||
| Average Inventory Processing Period, Competitors2 | |||||||
| Amazon.com Inc. | 40 | 43 | 44 | 37 | 45 | — | |
| Home Depot Inc. | 87 | 80 | 70 | 73 | 72 | — | |
| Lowe’s Cos. Inc. | 104 | 100 | 98 | 98 | 95 | — | |
| TJX Cos. Inc. | 59 | 63 | 65 | 60 | 60 | — | |
| Average Inventory Processing Period, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 59 | 60 | 57 | 53 | 60 | — | |
| Average Inventory Processing Period, Industry | |||||||
| Consumer Discretionary | 52 | 54 | 52 | 48 | 47 | — | |
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 1.45 = 251
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | AutoZone Inc. number of days of inventory outstanding deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Average Receivable Collection Period
AutoZone Inc., average receivable collection period 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 | |||||||
| Receivables turnover | 33.55 | 32.19 | 38.66 | 34.63 | 38.39 | 43.47 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 11 | 11 | 9 | 11 | 10 | 8 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Amazon.com Inc. | 22 | 19 | 16 | 14 | 16 | — | |
| Home Depot Inc. | 8 | 8 | 8 | 7 | 7 | — | |
| Lowe’s Cos. Inc. | — | — | — | — | — | — | |
| TJX Cos. Inc. | 4 | 4 | 5 | 3 | 3 | — | |
| Average Receivable Collection Period, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 16 | 14 | 12 | 10 | 11 | — | |
| Average Receivable Collection Period, Industry | |||||||
| Consumer Discretionary | 20 | 20 | 17 | 17 | 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).
1 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 33.55 = 11
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. |
Operating Cycle
AutoZone Inc., operating cycle calculation, comparison to benchmarks
No. days
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | Aug 25, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 251 | 265 | 245 | 279 | 287 | 274 | |
| Average receivable collection period | 11 | 11 | 9 | 11 | 10 | 8 | |
| Short-term Activity Ratio | |||||||
| Operating cycle1 | 262 | 276 | 254 | 290 | 297 | 282 | |
| Benchmarks | |||||||
| Operating Cycle, Competitors2 | |||||||
| Amazon.com Inc. | 62 | 62 | 60 | 51 | 61 | — | |
| Home Depot Inc. | 95 | 88 | 78 | 80 | 79 | — | |
| Lowe’s Cos. Inc. | — | — | — | — | — | — | |
| TJX Cos. Inc. | 63 | 67 | 70 | 63 | 63 | — | |
| Operating Cycle, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 75 | 74 | 69 | 63 | 71 | — | |
| Operating Cycle, Industry | |||||||
| Consumer Discretionary | 72 | 74 | 69 | 65 | 64 | — | |
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
Operating cycle = Average inventory processing period + Average receivable collection period
= 251 + 11 = 262
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | AutoZone Inc. operating cycle deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Average Payables Payment Period
AutoZone Inc., average payables payment period 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 | |||||||
| Payables turnover | 1.16 | 1.07 | 1.15 | 1.14 | 1.13 | 1.19 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 313 | 343 | 318 | 321 | 323 | 307 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Amazon.com Inc. | 102 | 101 | 105 | 113 | 104 | — | |
| Home Depot Inc. | 40 | 49 | 49 | 39 | 40 | — | |
| Lowe’s Cos. Inc. | 59 | 65 | 66 | 57 | 62 | — | |
| TJX Cos. Inc. | 38 | 47 | 72 | 33 | 35 | — | |
| Average Payables Payment Period, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 79 | 81 | 87 | 86 | 77 | — | |
| Average Payables Payment Period, Industry | |||||||
| Consumer Discretionary | 70 | 75 | 78 | 76 | 65 | — | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 1.16 = 313
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | AutoZone Inc. number of days of payables outstanding increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
Cash Conversion Cycle
AutoZone Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | Aug 25, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 251 | 265 | 245 | 279 | 287 | 274 | |
| Average receivable collection period | 11 | 11 | 9 | 11 | 10 | 8 | |
| Average payables payment period | 313 | 343 | 318 | 321 | 323 | 307 | |
| Short-term Activity Ratio | |||||||
| Cash conversion cycle1 | -51 | -67 | -64 | -31 | -26 | -25 | |
| Benchmarks | |||||||
| Cash Conversion Cycle, Competitors2 | |||||||
| Amazon.com Inc. | -40 | -39 | -45 | -62 | -43 | — | |
| Home Depot Inc. | 55 | 39 | 29 | 41 | 39 | — | |
| Lowe’s Cos. Inc. | — | — | — | — | — | — | |
| TJX Cos. Inc. | 25 | 20 | -2 | 30 | 28 | — | |
| Cash Conversion Cycle, Sector | |||||||
| Consumer Discretionary Distribution & Retail | -4 | -7 | -18 | -23 | -6 | — | |
| Cash Conversion Cycle, Industry | |||||||
| Consumer Discretionary | 2 | -1 | -9 | -11 | -1 | — | |
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 251 + 11 – 313 = -51
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | AutoZone Inc. cash conversion cycle improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |