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AutoZone (LTS:0HJL) ROA % : 21.05% (As of Aug. 2024)


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What is AutoZone ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. AutoZone's annualized Net Income for the quarter that ended in Aug. 2024 was $3,609 Mil. AutoZone's average Total Assets over the quarter that ended in Aug. 2024 was $17,142 Mil. Therefore, AutoZone's annualized ROA % for the quarter that ended in Aug. 2024 was 21.05%.

The historical rank and industry rank for AutoZone's ROA % or its related term are showing as below:

LTS:0HJL' s ROA % Range Over the Past 10 Years
Min: 14.25   Med: 14.94   Max: 16.81
Current: 15.54

During the past 13 years, AutoZone's highest ROA % was 16.81%. The lowest was 14.25%. And the median was 14.94%.

LTS:0HJL's ROA % is ranked better than
94.63% of 1118 companies
in the Retail - Cyclical industry
Industry Median: 2.335 vs LTS:0HJL: 15.54

AutoZone ROA % Historical Data

The historical data trend for AutoZone's ROA % 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 ROA % Chart

AutoZone Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.25 15.00 16.31 16.18 16.06

AutoZone Quarterly Data
Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24
ROA % 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 14.71 12.48 15.41 21.05 13.05

Competitive Comparison of AutoZone's ROA %

For the Specialty Retail subindustry, AutoZone's ROA %, along with its competitors' market caps and ROA % 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 ROA % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, AutoZone's ROA % distribution charts can be found below:

* The bar in red indicates where AutoZone's ROA % falls into.



AutoZone ROA % Calculation

AutoZone's annualized ROA % for the fiscal year that ended in Aug. 2024 is calculated as:

ROA %=Net Income (A: Aug. 2024 )/( (Total Assets (A: Aug. 2023 )+Total Assets (A: Aug. 2024 ))/ count )
=2662.427/( (15985.878+17176.538)/ 2 )
=2662.427/16581.208
=16.06 %

AutoZone's annualized ROA % for the quarter that ended in Aug. 2024 is calculated as:

ROA %=Net Income (Q: Aug. 2024 )/( (Total Assets (Q: May. 2024 )+Total Assets (Q: Aug. 2024 ))/ count )
=3608.832/( (17108.432+17176.538)/ 2 )
=3608.832/17142.485
=21.05 %

* 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 ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Aug. 2024) net income data. ROA % is displayed in the 30-year financial page.


AutoZone  (LTS:0HJL) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Aug. 2024 )
=Net Income/Total Assets
=3608.832/17142.485
=(Net Income / Revenue)*(Revenue / Total Assets)
=(3608.832 / 24821.52)*(24821.52 / 17142.485)
=Net Margin %*Asset Turnover
=14.54 %*1.448
=21.05 %

Note: The Net Income data used here is four times the quarterly (Aug. 2024) net income data. The Revenue data used here is four times the quarterly (Aug. 2024) revenue data.

* 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.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


AutoZone ROA % Related Terms

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AutoZone Business Description

Traded in Other Exchanges
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 over 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 in some instances, installation. The company also operates internationally, with over 750 stores in Mexico and more than 100 in Brazil.

AutoZone Headlines

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