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AZO (AutoZone) Debt-to-EBITDA : 3.66 (As of Feb. 2025)


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What is AutoZone Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

AutoZone's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2025 was $306 Mil. AutoZone's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2025 was $12,060 Mil. AutoZone's annualized EBITDA for the quarter that ended in Feb. 2025 was $3,379 Mil. AutoZone's annualized Debt-to-EBITDA for the quarter that ended in Feb. 2025 was 3.66.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for AutoZone's Debt-to-EBITDA or its related term are showing as below:

AZO' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 2.03   Med: 2.4   Max: 2.95
Current: 2.86

During the past 13 years, the highest Debt-to-EBITDA Ratio of AutoZone was 2.95. The lowest was 2.03. And the median was 2.40.

AZO's Debt-to-EBITDA is ranked worse than
55.97% of 1072 companies
in the Vehicles & Parts industry
Industry Median: 2.4 vs AZO: 2.86

AutoZone Debt-to-EBITDA Historical Data

The historical data trend for AutoZone's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

AutoZone Debt-to-EBITDA Chart

AutoZone Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.95 2.45 2.50 2.74 2.84

AutoZone Quarterly Data
May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.41 2.98 2.08 3.15 3.66

Competitive Comparison of AutoZone's Debt-to-EBITDA

For the Auto Parts subindustry, AutoZone's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


AutoZone's Debt-to-EBITDA Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, AutoZone's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where AutoZone's Debt-to-EBITDA falls into.


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AutoZone Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

AutoZone's Debt-to-EBITDA for the fiscal year that ended in Aug. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(382.414 + 11984.555) / 4349.775
=2.84

AutoZone's annualized Debt-to-EBITDA for the quarter that ended in Feb. 2025 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(306.185 + 12059.554) / 3378.74
=3.66

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Feb. 2025) EBITDA data.


AutoZone  (NYSE:AZO) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


AutoZone Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of AutoZone's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.


AutoZone Business Description

Address
123 South Front Street, Memphis, TN, USA, 38103
AutoZone operates as a leading retailer of aftermarket automotive parts in the United States. The firm operates more than 6,400 stores domestically, serving both the do-it-yourself and commercial (do-it-for-me) end markets. Through its vast store footprint and distribution network, AutoZone manages a wide array of stock-keeping units applicable to numerous vehicle makes and models, providing its consumers with ample product availability. The firm drives traffic by providing superior and convenient customer service as AutoZone's team of knowledgeable staff assists consumers with diagnosing a vehicle's problem, selecting the necessary part for replacement, and occasionally, installation. The company also operates internationally, with 800 stores in Mexico and more than 100 in Brazil.
Executives
Eric S. Gould officer: Sr. Vice President 123 SOUTH FRONT STREET, MEMPHIS TN 38103
Philip B. Daniele officer: Sr. Vice President 123 S. FRONT STREET, DEPT. 8074, MEMPHIS TN 38103
Richard Craig Smith officer: Sr. Vice President 123 S. FRONT STREET, DEPT. 8074, MEMPHIS TN 38103
K. Michelle Borninkhof officer: Senior Vice President & CIO 123 FRONT STREET, MEMPHIS TN 38103
Dennis W. Leriche officer: Sr. Vice President 123 FRONT STREET, MEMPHIS TN 38103
Rhodes William C Iii officer: Senior Vice President 123 SOUTH FRONT STREET, DEPT. 8074, MEMPHIS TN 38103
John Scott Murphy officer: Vice President, Controller 123 FRONT STREET, MEMPHIS TN 38103
Jenna M. Bedsole officer: Sr. Vice President 123 SOUTH FRONT STREET, MEMPHIS TN 38103
Grant E. Mcgee officer: Sr. Vice President 123 FRONT STREET, MEMPHIS TN 38103
Domingo Hurtado officer: Sr. Vice President 123 SOUTH FRONT STREET, MEMPHIS TN 38103
Mrkonic George R Jr director C/O BORDERS GROUP INC, 100 PHOENIX DRIVE, ANN ARBOR MI 48108
Thomas B Newbern officer: Sr. Vice President 123 SOUTH FRONT STREET, DEPT. 8074, MEMPHIS TN 38103
Charles Iii Pleas officer: Vice President and Controller 123 S. FRONT STREET, DEPT. 8074, MEMPHIS TN 38103
Lindsay Lehman officer: SVP, Marketing 123 SOUTH FRONT STREET, MEMPHIS TN 38103
Preston Frazer officer: Senior Vice President 123 SOUTH FRONT ST, MEMPHIS TN 38103