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AutoZone Inc (NYSE:AZO)
Debt to Equity
-2.78 (As of Aug. 2016)

AutoZone Inc's current portion of long-term debt for the quarter that ended in Aug. 2016 was $45 Mil. AutoZone Inc's long-term debt for the quarter that ended in Aug. 2016 was $4,924 Mil. AutoZone Inc's total equity for the quarter that ended in Aug. 2016 was $-1,788 Mil. AutoZone Inc's debt to equity for the quarter that ended in Aug. 2016 was -2.78.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.


Definition

Debt to Equity measures the financial leverage a company has.

AutoZone Inc's Debt to Equity Ratio for the fiscal year that ended in Aug. 2016 is calculated as

Debt to Equity=Total Debt / Total Equity
=(Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity
=(44.834 + 4924.119) / -1787.538
=-2.78

AutoZone Inc's Debt to Equity Ratio for the quarter that ended in Aug. 2016 is calculated as

Debt to Equity=Total Debt / Total Equity
=(Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity
=(44.834 + 4924.119) / -1787.538
=-2.78

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

In the calculation of Debt to Equity, we use the total of Current Portion of Long-Term Debt and Long-Term Debt divided by Total Equity. In some calculations, Total Liabilities is used to for calculation.


Be Aware

Because a company can increase its Return on Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return on Equity companies.


Related Terms

Current Portion of Long-Term Debt, Long-Term Debt, Total Equity, Return on Equity


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

AutoZone Inc Annual Data

Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14Aug15Aug16
deb2equity 4.849.80-6.30-3.97-2.67-2.45-2.50-2.69-2.74-2.78

AutoZone Inc Quarterly Data

May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16
deb2equity -2.42-2.69-2.66-3.03-2.76-2.74-2.67-2.78-2.66-2.78
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