Inventory Disclosure
Adjustment to Inventory: Conversion from LIFO to FIFO
Adjusted Financial Ratios: LIFO vs. FIFO (Summary)
Adjusted Current Ratio
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

AutoZone Inc., balance sheet: inventory

US$ in thousands

		Aug 26, 2023		Aug 27, 2022		Aug 28, 2021		Aug 29, 2020		Aug 31, 2019		Aug 25, 2018
	Merchandise inventories	5,764,143)		5,638,004)		4,639,813)		4,473,282)		4,319,113)		3,943,670)

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).

Download chart

Item	Description	The company
Merchandise inventories	Amount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer.	AutoZone Inc. merchandise inventories increased from 2021 to 2022 and from 2022 to 2023.

Adjusting LIFO Inventory to FIFO (Current) Cost

US$ in thousands

	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019	Aug 25, 2018
Adjustment to Merchandise Inventories
Merchandise inventories at LIFO (as reported)	5,764,143)	5,638,004)	4,639,813)	4,473,282)	4,319,113)	3,943,670)
Add: Inventory LIFO reserve	(59,000)	(15,000)	(335,300)	(357,000)	(404,900)	(452,400)
Merchandise inventories at FIFO (adjusted)	5,705,143)	5,623,004)	4,304,513)	4,116,282)	3,914,213)	3,491,270)
Adjustment to Current Assets
Current assets (as reported)	6,779,426)	6,627,984)	6,415,303)	6,811,872)	5,028,685)	4,635,869)
Add: Inventory LIFO reserve	(59,000)	(15,000)	(335,300)	(357,000)	(404,900)	(452,400)
Current assets (adjusted)	6,720,426)	6,612,984)	6,080,003)	6,454,872)	4,623,785)	4,183,469)
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)
Add: Inventory LIFO reserve	(59,000)	(15,000)	(335,300)	(357,000)	(404,900)	(452,400)
Total assets (adjusted)	15,926,878)	15,260,043)	14,180,899)	14,066,872)	9,491,013)	8,894,580)
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)
Add: Inventory LIFO reserve	(59,000)	(15,000)	(335,300)	(357,000)	(404,900)	(452,400)
Stockholders’ deficit (adjusted)	(4,408,894)	(3,553,913)	(2,132,836)	(1,234,977)	(2,118,751)	(1,972,755)
Adjustment to Net Income
Net income (as reported)	2,528,426)	2,429,604)	2,170,314)	1,732,972)	1,617,221)	1,337,536)
Add: Increase (decrease) in inventory LIFO reserve	(44,000)	320,300)	21,700)	47,900)	47,500)	(37,500)
Net income (adjusted)	2,484,426)	2,749,904)	2,192,014)	1,780,872)	1,664,721)	1,300,036)

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. inventory value on Aug 26, 2023 would be $5,705,143) (in thousands) if the FIFO inventory method was used instead of LIFO. AutoZone Inc. inventories, valued on a LIFO basis, on Aug 26, 2023 were $5,764,143). AutoZone Inc. inventories would have been $(59,000) higher than reported on Aug 26, 2023 if the FIFO method had been used instead.

AutoZone Inc., Financial Data: Reported vs. Adjusted

Download chart

AutoZone Inc., adjusted financial ratios

	Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019	Aug 25, 2018
Current Ratio
Reported current ratio (LIFO)	0.80	0.77	0.87	1.08	0.91	0.92
Adjusted current ratio (FIFO)	0.79	0.77	0.82	1.03	0.84	0.83
Net Profit Margin
Reported net profit margin (LIFO)	14.48%	14.95%	14.84%	13.72%	13.63%	11.92%
Adjusted net profit margin (FIFO)	14.23%	16.92%	14.98%	14.10%	14.03%	11.59%
Total Asset Turnover
Reported total asset turnover (LIFO)	1.09	1.06	1.01	0.88	1.20	1.20
Adjusted total asset turnover (FIFO)	1.10	1.07	1.03	0.90	1.25	1.26
Financial Leverage
Reported financial leverage (LIFO)	—	—	—	—	—	—
Adjusted financial leverage (FIFO)	—	—	—	—	—	—
Return on Equity (ROE)
Reported ROE (LIFO)	—	—	—	—	—	—
Adjusted ROE (FIFO)	—	—	—	—	—	—
Return on Assets (ROA)
Reported ROA (LIFO)	15.82%	15.91%	14.95%	12.01%	16.34%	14.31%
Adjusted ROA (FIFO)	15.60%	18.02%	15.46%	12.66%	17.54%	14.62%

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 current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	AutoZone Inc. adjusted current ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	AutoZone Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
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 adjusted net income divided by adjusted total assets.	AutoZone Inc. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

AutoZone Inc., Financial Ratios: Reported vs. Adjusted

Download chart

	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)
Current assets	6,779,426)	6,627,984)	6,415,303)	6,811,872)	5,028,685)	4,635,869)
Current liabilities	8,511,856)	8,588,393)	7,369,754)	6,283,091)	5,512,141)	5,028,681)
Liquidity Ratio
Current ratio¹	0.80	0.77	0.87	1.08	0.91	0.92
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted current assets	6,720,426)	6,612,984)	6,080,003)	6,454,872)	4,623,785)	4,183,469)
Current liabilities	8,511,856)	8,588,393)	7,369,754)	6,283,091)	5,512,141)	5,028,681)
Liquidity Ratio
Adjusted current ratio²	0.79	0.77	0.82	1.03	0.84	0.83

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 Current ratio = Current assets ÷ Current liabilities
= 6,779,426 ÷ 8,511,856 = 0.80

² Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 6,720,426 ÷ 8,511,856 = 0.79

Download chart

Liquidity ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	AutoZone Inc. adjusted current ratio deteriorated from 2021 to 2022 but then slightly improved 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)
Net income	2,528,426)	2,429,604)	2,170,314)	1,732,972)	1,617,221)	1,337,536)
Net sales	17,457,209)	16,252,230)	14,629,585)	12,631,967)	11,863,743)	11,221,077)
Profitability Ratio
Net profit margin¹	14.48%	14.95%	14.84%	13.72%	13.63%	11.92%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net income	2,484,426)	2,749,904)	2,192,014)	1,780,872)	1,664,721)	1,300,036)
Net sales	17,457,209)	16,252,230)	14,629,585)	12,631,967)	11,863,743)	11,221,077)
Profitability Ratio
Adjusted net profit margin²	14.23%	16.92%	14.98%	14.10%	14.03%	11.59%

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 Net profit margin = 100 × Net income ÷ Net sales
= 100 × 2,528,426 ÷ 17,457,209 = 14.48%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Net sales
= 100 × 2,484,426 ÷ 17,457,209 = 14.23%

Download chart

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	AutoZone Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly 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)
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: After Conversion from LIFO to FIFO
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	15,926,878)	15,260,043)	14,180,899)	14,066,872)	9,491,013)	8,894,580)
Activity Ratio
Adjusted total asset turnover²	1.10	1.07	1.03	0.90	1.25	1.26

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 ÷ 15,926,878 = 1.10

Download chart

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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted total assets	15,926,878)	15,260,043)	14,180,899)	14,066,872)	9,491,013)	8,894,580)
Adjusted stockholders’ deficit	(4,408,894)	(3,553,913)	(2,132,836)	(1,234,977)	(2,118,751)	(1,972,755)
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
= 15,926,878 ÷ -4,408,894 = —

Download chart

	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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net income	2,484,426)	2,749,904)	2,192,014)	1,780,872)	1,664,721)	1,300,036)
Adjusted stockholders’ deficit	(4,408,894)	(3,553,913)	(2,132,836)	(1,234,977)	(2,118,751)	(1,972,755)
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 × Adjusted net income ÷ Adjusted stockholders’ deficit
= 100 × 2,484,426 ÷ -4,408,894 = —

Download chart

	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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net income	2,484,426)	2,749,904)	2,192,014)	1,780,872)	1,664,721)	1,300,036)
Adjusted total assets	15,926,878)	15,260,043)	14,180,899)	14,066,872)	9,491,013)	8,894,580)
Profitability Ratio
Adjusted ROA²	15.60%	18.02%	15.46%	12.66%	17.54%	14.62%

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 × Adjusted net income ÷ Adjusted total assets
= 100 × 2,484,426 ÷ 15,926,878 = 15.60%

Download chart

Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	AutoZone Inc. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

AutoZone Inc. (NYSE:AZO)

Analysis of Inventory

Inventory Disclosure

Adjustment to Inventory: Conversion from LIFO to FIFO

AutoZone Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: LIFO vs. FIFO (Summary)

AutoZone Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Current Ratio

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)