AutoZone Inc., FCFF calculation

US$ in thousands

12 months ended:	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019	Aug 25, 2018
Net income	2,528,426)	2,429,604)	2,170,314)	1,732,972)	1,617,221)	1,337,536)
Net noncash charges	618,221)	724,705)	442,221)	504,108)	449,629)	584,719)
Changes in operating assets and liabilities	(205,859)	56,826)	906,008)	483,028)	61,663)	158,037)
Net cash provided by operating activities	2,940,788)	3,211,135)	3,518,543)	2,720,108)	2,128,513)	2,080,292)
Interest paid, net of interest cost capitalized, net of tax¹	208,171)	140,885)	148,291)	126,578)	121,470)	118,219)
Capitalized interest, net of tax²	1,353)	944)	1,240)	913)	1,165)	1,085)
Capital expenditures	(796,657)	(672,391)	(621,767)	(457,736)	(496,050)	(521,788)
Leased assets obtained in exchange for new finance lease liabilities	(58,316)	(100,711)	(112,095)	(115,867)	(147,699)	(98,782)
Free cash flow to the firm (FCFF)	2,295,339)	2,579,862)	2,934,212)	2,273,995)	1,607,399)	1,579,026)

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, 2} See details »

Download chart

Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the AutoZone Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	AutoZone Inc. FCFF decreased from 2021 to 2022 and from 2022 to 2023.

AutoZone Inc., interest paid, net of tax calculation

US$ in thousands

12 months ended:	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019	Aug 25, 2018
Effective Income Tax Rate (EITR)
EITR¹	20.20%	21.10%	21.10%	21.80%	20.80%	27.90%
Interest Paid, Net of Tax
Interest paid, net of interest cost capitalized, before tax	260,866)	178,561)	187,948)	161,864)	153,371)	163,965)
Less: Interest paid, net of interest cost capitalized, tax²	52,695)	37,676)	39,657)	35,286)	31,901)	45,746)
Interest paid, net of interest cost capitalized, net of tax	208,171)	140,885)	148,291)	126,578)	121,470)	118,219)
Interest Costs Capitalized, Net of Tax
Capitalized interest, before tax	1,695)	1,197)	1,572)	1,167)	1,471)	1,505)
Less: Capitalized interest, tax³	342)	253)	332)	254)	306)	420)
Capitalized interest, net of tax	1,353)	944)	1,240)	913)	1,165)	1,085)

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 See details »

² 2023 Calculation
Interest paid, net of interest cost capitalized, tax = Interest paid, net of interest cost capitalized × EITR
= 260,866 × 20.20% = 52,695

³ 2023 Calculation
Capitalized interest, tax = Capitalized interest × EITR
= 1,695 × 20.20% = 342

Download chart

AutoZone Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	54,277,015)
Free cash flow to the firm (FCFF)	2,295,339)
Valuation Ratio
EV/FCFF	23.65
Benchmarks
EV/FCFF, Competitors¹
Amazon.com Inc.	47.20
Home Depot Inc.	19.54
Lowe’s Cos. Inc.	22.83
TJX Cos. Inc.	23.93
EV/FCFF, Sector
Consumer Discretionary Distribution & Retail	40.37
EV/FCFF, Industry
Consumer Discretionary	32.30

Based on: 10-K (reporting date: 2023-08-26).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

AutoZone Inc., historical EV/FCFF 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)
Enterprise value (EV)¹	50,372,161)	51,816,412)	42,513,078)	30,608,029)	32,538,131)	23,495,797)
Free cash flow to the firm (FCFF)²	2,295,339)	2,579,862)	2,934,212)	2,273,995)	1,607,399)	1,579,026)
Valuation Ratio
EV/FCFF³	21.95	20.08	14.49	13.46	20.24	14.88
Benchmarks
EV/FCFF, Competitors⁴
Amazon.com Inc.	45.92	—	—	78.83	74.39	—
Home Depot Inc.	27.17	25.12	20.22	19.11	21.30	—
Lowe’s Cos. Inc.	19.56	19.56	14.88	20.95	18.88	—
TJX Cos. Inc.	31.93	33.03	18.30	19.08	21.16	—
EV/FCFF, Sector
Consumer Discretionary Distribution & Retail	38.32	111.04	130.00	51.35	42.44	—
EV/FCFF, Industry
Consumer Discretionary	32.37	55.70	66.77	52.40	31.02	—

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 See details »

² See details »

³ 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 50,372,161 ÷ 2,295,339 = 21.95

⁴ Click competitor name to see calculations.

Download chart

Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	AutoZone Inc. EV/FCFF ratio increased from 2021 to 2022 and from 2022 to 2023.

AutoZone Inc. (NYSE:AZO)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical