As a financial expert for Ando Money, my mission is to break down the key aspects of AutoZone’s financial standing.
Curious about AutoZone net worth? We’ll explore how their revenue streams, operations, and profitability contribute to their overall financial performance.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | AutoZone |
| Full Name | N/A |
| Industry | Retail – Automotive Parts & Accessories |
| Traded as | NYSE: AZO |
| ISIN | N/A |
| Founded | July 4, 1979 |
| Founders | J.R. “Pitt” Hyde III |
| Country/Territory | USA |
| Headquarters | Memphis, Tennessee |
| Chief Executive Officer | William C. Rhodes III |
| Number of Employees | Approximately 112,000 |
| Market Cap | $54.10 Billion (September 2024) |
| Total Assets | $17.10 B |
| Total Equity | N/A |
| Revenue | $18.49 Billion (FY 2024) |
| Net Income | $2.662 Billion (FY 2024) |
What is the Net Worth/Market Cap Of AutoZone in 2024?
As of September 2024, AutoZone’s market cap stands at $54.10 billion, making it a significant player in the retail automotive sector.
This valuation reflects the company’s financial stability and strong growth, setting it apart from many peers in the industry.
To put things into perspective, AutoZone’s market cap positions it alongside several other top brands in the market, demonstrating its value among some of the leading financial performers.
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Check out how AutoZone ranks among the world’s top companies in our deep dive into the biggest companies by valuation.
Financial Performance Overview
How the Firm Generates Revenue and Growth
AutoZone’s revenue primarily comes from its retail (DIY) and commercial (DIFM) operations. The company experienced a revenue of $18.49 billion in FY 2024, growing by 5.9% compared to the previous year.
A major part of this growth comes from both domestic and international sales, with consistent sales improvements across the board.
While domestic sales have a steady rise, international operations in Mexico and Brazil contribute significantly to revenue growth as well.
Retail and Commercial Operations’ Impact on Revenue
Retail and commercial operations are key drivers for AutoZone’s financial performance. The firm’s commercial sales in FY 2024 reached $4.883 billion, with a 10.9% increase in Q4 compared to the previous fiscal year.
The commercial segment plays a significant role in the overall revenue, accounting for a notable share of the company’s total earnings.
The firm also focuses on commercial programs across its domestic stores, which encompass around 92% of all domestic outlets.
Influence of Store Expansion on Financial Growth
AutoZone continues its expansion efforts to drive revenue. In Q4 of FY 2024, the company opened 68 new stores domestically and expanded further into Mexico and Brazil.
This international growth saw an increase of 7.3% in the Mexican market and 27% in the Brazilian market compared to Q4 FY 2023.
Overall, AutoZone’s total store count reached 7,353 stores, marking significant growth and creating more opportunities for both retail and commercial sales.
Profitability and Gross Margin Analysis
Profitability is a critical measure for AutoZone, and its gross margin stood at 53.1% in FY 2024, demonstrating the company’s ability to maintain profitable operations.
The firm’s operating profit (EBIT) reached $3.789 billion, showcasing a 20.5% EBIT margin.
Maintaining a strong gross margin allows AutoZone to sustain its operations effectively while managing operating expenses, which remain controlled at around 32.6%.
Share Repurchases and Their Financial Impact
One of AutoZone’s strategic moves to enhance shareholder value is its stock buyback program. During FY 2024, AutoZone repurchased shares worth $3.2 billion.
This repurchasing activity reduced diluted weighted average shares outstanding by 6.8% compared to FY 2023.
The company’s share buybacks play a crucial role in increasing the earnings per share (EPS), which stood at $149.55 for FY 2024.
Debt and Interest Costs and Their Role in Profit
AutoZone’s financial structure includes a debt of $9.024 billion, with interest expenses recorded at $452 million in FY 2024.
While the debt levels increased by 17.7% compared to the previous year, it is managed effectively to ensure profitability.
The company’s approach to balancing debt and profitability demonstrates a sound financial strategy, allowing it to maintain growth while covering operational costs.
Key Metrics Driving Financial Health
Several metrics drive AutoZone’s financial performance.
The firm’s net income of $2.662 billion reflects a robust bottom line, while operating profit (EBIT) and working capital (negative $1.407 billion) indicate efficient operational management.
The firm’s assets, including $6.184 billion in property and equipment, contribute significantly to its operational capacity and sales generation.
Domestic and International Sales Performance
AutoZone’s domestic and international sales contribute to its financial stability.
Same-store sales (SSS) in FY 2024 show an increase of 1.4% across the company, with 0.4% growth domestically and a significant 10.2% increase in international markets like Mexico and Brazil.
The company’s ability to grow across regions plays a key role in revenue expansion.
Financial Strategies for Future Growth
Looking forward, AutoZone focuses on several strategies to enhance growth, including investment in technology, improving customer experience, and optimizing inventory management.
The company is also intent on expanding its retail and commercial footprint in domestic and international markets, aiming to drive revenue and maintain profitability.
FAQs About AutoZone
How Many Stores Does AutoZone Have?
As of FY 2024, AutoZone has a total of 7,353 stores across the U.S., Mexico, and Brazil.
What Is AutoZone’s Primary Source of Revenue?
AutoZone’s revenue comes from its retail (DIY) and commercial (DIFM) operations, with a significant portion attributed to domestic sales.
How Has AutoZone’s Gross Margin Performed in Recent Years?
AutoZone’s gross margin improved to 53.1% in FY 2024, reflecting a well-managed cost structure and operational efficiency.
How Much Stock Did AutoZone Repurchase in FY 2024?
During FY 2024, AutoZone repurchased stock worth $3.2 billion, contributing to a higher earnings per share.
What Is the Company’s Financial Outlook for Future Growth?
AutoZone is focusing on retail and commercial expansion, international growth, technology investments, and inventory management for sustained financial growth.
Conclusion
I hope this comprehensive analysis of AutoZone’s financial performance was insightful.
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