Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

AutoZone Inc., balance sheet: goodwill and intangible assets

US$ in thousands

	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019	Aug 25, 2018
Goodwill	302,645)	302,645)	302,645)	302,645)	302,645)	302,645)
Technology	—)	—)	—)	—)	870)	870)
Customer relationships	—)	—)	29,376)	29,376)	29,376)	29,376)
Amortizing intangible assets, gross carrying amount	—)	—)	29,376)	29,376)	30,246)	30,246)
Accumulated amortization	—)	—)	(29,376)	(27,933)	(24,630)	(20,457)
Amortizing intangible assets, net carrying amount	—)	—)	—)	1,443)	5,616)	9,789)
Intangible assets other than goodwill	—)	—)	—)	1,443)	5,616)	9,789)
Goodwill and intangibles	302,645)	302,645)	302,645)	304,088)	308,261)	312,434)

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).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.
Intangible assets other than goodwill	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.
Goodwill and intangibles	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.

AutoZone Inc., adjustments to financial statements

US$ in thousands

	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019	Aug 25, 2018
Adjustment to Total Assets
Total assets (as reported)	15,985,878)	15,275,043)	14,516,199)	14,423,872)	9,895,913)	9,346,980)
Less: Goodwill	302,645)	302,645)	302,645)	302,645)	302,645)	302,645)
Total assets (adjusted)	15,683,233)	14,972,398)	14,213,554)	14,121,227)	9,593,268)	9,044,335)
Adjustment to Stockholders’ Deficit
Stockholders’ deficit (as reported)	(4,349,894)	(3,538,913)	(1,797,536)	(877,977)	(1,713,851)	(1,520,355)
Less: Goodwill	302,645)	302,645)	302,645)	302,645)	302,645)	302,645)
Stockholders’ deficit (adjusted)	(4,652,539)	(3,841,558)	(2,100,181)	(1,180,622)	(2,016,496)	(1,823,000)

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).

AutoZone Inc., Financial Data: Reported vs. Adjusted

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AutoZone Inc., adjusted financial ratios

	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019	Aug 25, 2018
Total Asset Turnover
Reported total asset turnover	1.09	1.06	1.01	0.88	1.20	1.20
Adjusted total asset turnover	1.11	1.09	1.03	0.89	1.24	1.24
Financial Leverage
Reported financial leverage	—	—	—	—	—	—
Adjusted financial leverage	—	—	—	—	—	—
Return on Equity (ROE)
Reported ROE	—	—	—	—	—	—
Adjusted ROE	—	—	—	—	—	—
Return on Assets (ROA)
Reported ROA	15.82%	15.91%	14.95%	12.01%	16.34%	14.31%
Adjusted ROA	16.12%	16.23%	15.27%	12.27%	16.86%	14.79%

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).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	AutoZone Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	AutoZone Inc. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

AutoZone Inc., Financial Ratios: Reported vs. Adjusted

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	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019	Aug 25, 2018
As Reported
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)
Total assets	15,985,878)	15,275,043)	14,516,199)	14,423,872)	9,895,913)	9,346,980)
Activity Ratio
Total asset turnover¹	1.09	1.06	1.01	0.88	1.20	1.20
Adjusted for Goodwill
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)
Adjusted total assets	15,683,233)	14,972,398)	14,213,554)	14,121,227)	9,593,268)	9,044,335)
Activity Ratio
Adjusted total asset turnover²	1.11	1.09	1.03	0.89	1.24	1.24

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).

2023 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 17,457,209 ÷ 15,985,878 = 1.09

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 17,457,209 ÷ 15,683,233 = 1.11

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	AutoZone Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019	Aug 25, 2018
As Reported
Selected Financial Data (US$ in thousands)
Total assets	15,985,878)	15,275,043)	14,516,199)	14,423,872)	9,895,913)	9,346,980)
Stockholders’ deficit	(4,349,894)	(3,538,913)	(1,797,536)	(877,977)	(1,713,851)	(1,520,355)
Solvency Ratio
Financial leverage¹	—	—	—	—	—	—
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets	15,683,233)	14,972,398)	14,213,554)	14,121,227)	9,593,268)	9,044,335)
Adjusted stockholders’ deficit	(4,652,539)	(3,841,558)	(2,100,181)	(1,180,622)	(2,016,496)	(1,823,000)
Solvency Ratio
Adjusted financial leverage²	—	—	—	—	—	—

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).

2023 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ deficit
= 15,985,878 ÷ -4,349,894 = —

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ deficit
= 15,683,233 ÷ -4,652,539 = —

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	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019	Aug 25, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income	2,528,426)	2,429,604)	2,170,314)	1,732,972)	1,617,221)	1,337,536)
Stockholders’ deficit	(4,349,894)	(3,538,913)	(1,797,536)	(877,977)	(1,713,851)	(1,520,355)
Profitability Ratio
ROE¹	—	—	—	—	—	—
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income	2,528,426)	2,429,604)	2,170,314)	1,732,972)	1,617,221)	1,337,536)
Adjusted stockholders’ deficit	(4,652,539)	(3,841,558)	(2,100,181)	(1,180,622)	(2,016,496)	(1,823,000)
Profitability Ratio
Adjusted ROE²	—	—	—	—	—	—

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).

2023 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ deficit
= 100 × 2,528,426 ÷ -4,349,894 = —

² Adjusted ROE = 100 × Net income ÷ Adjusted stockholders’ deficit
= 100 × 2,528,426 ÷ -4,652,539 = —

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	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019	Aug 25, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income	2,528,426)	2,429,604)	2,170,314)	1,732,972)	1,617,221)	1,337,536)
Total assets	15,985,878)	15,275,043)	14,516,199)	14,423,872)	9,895,913)	9,346,980)
Profitability Ratio
ROA¹	15.82%	15.91%	14.95%	12.01%	16.34%	14.31%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income	2,528,426)	2,429,604)	2,170,314)	1,732,972)	1,617,221)	1,337,536)
Adjusted total assets	15,683,233)	14,972,398)	14,213,554)	14,121,227)	9,593,268)	9,044,335)
Profitability Ratio
Adjusted ROA²	16.12%	16.23%	15.27%	12.27%	16.86%	14.79%

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).

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 2,528,426 ÷ 15,985,878 = 15.82%

² Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 2,528,426 ÷ 15,683,233 = 16.12%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	AutoZone Inc. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

AutoZone Inc. (NYSE:AZO)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

AutoZone Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

AutoZone Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)