Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
AutoZone Inc., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | AutoZone Inc. gross profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | AutoZone Inc. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | AutoZone Inc. net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | AutoZone Inc. ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Gross Profit Margin
AutoZone Inc., gross profit margin calculation, comparison to benchmarks
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | Aug 25, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Gross profit | 9,070,422) | 8,472,650) | 7,717,785) | 6,770,753) | 6,365,001) | 5,973,746) | |
| Net sales | 17,457,209) | 16,252,230) | 14,629,585) | 12,631,967) | 11,863,743) | 11,221,077) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 51.96% | 52.13% | 52.75% | 53.60% | 53.65% | 53.24% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | 46.98% | 43.81% | 42.03% | 39.57% | 40.99% | — | |
| Home Depot Inc. | 33.53% | 33.63% | 33.95% | 34.09% | 34.34% | — | |
| Lowe’s Cos. Inc. | 33.23% | 33.30% | 33.01% | 31.80% | 32.12% | — | |
| TJX Cos. Inc. | 27.61% | 28.50% | 23.66% | 28.46% | 28.59% | — | |
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).
1 2023 Calculation
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 9,070,422 ÷ 17,457,209 = 51.96%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | AutoZone Inc. gross profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Operating Profit Margin
AutoZone Inc., operating profit margin calculation, comparison to benchmarks
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | Aug 25, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Operating profit | 3,473,986) | 3,270,729) | 2,944,527) | 2,417,679) | 2,216,137) | 1,810,856) | |
| Net sales | 17,457,209) | 16,252,230) | 14,629,585) | 12,631,967) | 11,863,743) | 11,221,077) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 19.90% | 20.12% | 20.13% | 19.14% | 18.68% | 16.14% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | 6.41% | 2.38% | 5.30% | 5.93% | 5.18% | — | |
| Home Depot Inc. | 15.27% | 15.24% | 13.84% | 14.37% | 14.35% | — | |
| Lowe’s Cos. Inc. | 10.47% | 12.56% | 10.77% | 8.75% | 5.63% | — | |
| TJX Cos. Inc. | 9.73% | 9.79% | 1.81% | 10.59% | 10.82% | — | |
| Operating Profit Margin, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 8.63% | 6.44% | 7.38% | 8.11% | 7.68% | — | |
| Operating Profit Margin, Industry | |||||||
| Consumer Discretionary | 9.12% | 8.47% | 8.79% | 6.48% | 7.63% | — | |
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).
1 2023 Calculation
Operating profit margin = 100 × Operating profit ÷ Net sales
= 100 × 3,473,986 ÷ 17,457,209 = 19.90%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | AutoZone Inc. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Net Profit Margin
AutoZone Inc., net profit margin calculation, comparison to benchmarks
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | Aug 25, 2018 | ||
|---|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | 5.29% | -0.53% | 7.10% | 5.53% | 4.13% | — | |
| Home Depot Inc. | 10.87% | 10.87% | 9.74% | 10.20% | 10.28% | — | |
| Lowe’s Cos. Inc. | 6.63% | 8.77% | 6.51% | 5.93% | 3.25% | — | |
| TJX Cos. Inc. | 7.00% | 6.76% | 0.28% | 7.84% | 7.85% | — | |
| Net Profit Margin, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 6.54% | 3.14% | 7.21% | 6.58% | 5.63% | — | |
| Net Profit Margin, Industry | |||||||
| Consumer Discretionary | 7.92% | 5.15% | 9.20% | 5.24% | 5.92% | — | |
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).
1 2023 Calculation
Net profit margin = 100 × Net income ÷ Net sales
= 100 × 2,528,426 ÷ 17,457,209 = 14.48%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | AutoZone Inc. net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Return on Equity (ROE)
AutoZone Inc., ROE calculation, comparison to benchmarks
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | Aug 25, 2018 | ||
|---|---|---|---|---|---|---|---|
| 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 | — | — | — | — | — | — | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Amazon.com Inc. | 15.07% | -1.86% | 24.13% | 22.84% | 18.67% | — | |
| Home Depot Inc. | 1,095.07% | — | 390.00% | — | — | — | |
| Lowe’s Cos. Inc. | — | — | 406.05% | 217.09% | 63.50% | — | |
| TJX Cos. Inc. | 54.97% | 54.69% | 1.55% | 55.01% | 60.61% | — | |
| ROE, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 29.39% | 17.48% | 35.05% | 40.86% | 40.77% | — | |
| ROE, Industry | |||||||
| Consumer Discretionary | 30.61% | 21.65% | 34.37% | 25.29% | 34.62% | — | |
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).
1 2023 Calculation
ROE = 100 × Net income ÷ Stockholders’ deficit
= 100 × 2,528,426 ÷ -4,349,894 = —
2 Click competitor name to see calculations.
Return on Assets (ROA)
AutoZone Inc., ROA calculation, comparison to benchmarks
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | Aug 25, 2018 | ||
|---|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Amazon.com Inc. | 5.76% | -0.59% | 7.93% | 6.64% | 5.14% | — | |
| Home Depot Inc. | 22.38% | 22.86% | 18.23% | 21.94% | 25.27% | — | |
| Lowe’s Cos. Inc. | 14.73% | 18.91% | 12.49% | 10.85% | 6.71% | — | |
| TJX Cos. Inc. | 12.34% | 11.53% | 0.29% | 13.55% | 21.36% | — | |
| ROA, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 8.50% | 4.19% | 9.17% | 9.20% | 8.83% | — | |
| ROA, Industry | |||||||
| Consumer Discretionary | 7.66% | 4.94% | 8.07% | 4.42% | 5.57% | — | |
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).
1 2023 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 2,528,426 ÷ 15,985,878 = 15.82%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | AutoZone Inc. ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |