AZO AUTOZONE INC

Overview and Growth

Fiscal 2025 results for AUTOZONE INC combined $18.94B of revenue with net income of $2.50B and an operating cash inflow of $3.12B. At $18.94B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Compared with $18.49B in fiscal 2024, revenue recorded a 2.4% year-over-year increase. The company reported diluted EPS of $144.87, adding a shareholder-level measure to the absolute income figures considered below. The per-share result recorded a 3.1% decrease from fiscal 2024 diluted EPS of $149.55. Revenue equaled 0.98x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

Gross profit was $9.97B, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. The gross-profit relationship equaled 52.6% of revenue, quantifying the portion retained before operating expenses were recognized. Operations produced $3.61B of income after the reported operating expense base, before the remaining non-operating and tax effects. The operating result equaled 19.1% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. The bottom-line result was net income of $2.50B, after the operating, financing, tax, and other items recognized for the period. Net margin was 13.2%, meaning that this portion of revenue remained as net income after all recognized expenses. The earnings statement records $3.13B of pretax income, the profit base against which the reported tax provision can be assessed. The pretax margin was 16.5%, relating income before taxes directly to revenue. Income tax expense totaled $636.09M, providing the reported tax component that separates pretax and after-tax earnings. The effective relationship between income tax and positive pretax income was 20.3%, without assuming a statutory-rate comparison.

Liquidity and Capital Structure

At period end, the $19.36B asset base was financed through $22.77B of liabilities and -$3.41B of equity. Equity was negative at -$3.41B, meaning liabilities exceeded the residual book value available to shareholders and weakening balance-sheet resilience. The near-term balance sheet paired $8.34B of current assets with $9.52B of current liabilities at the reporting date. At 0.88x, current liabilities exceeded current assets and placed pressure on the company’s near-term liquidity position. Reported cash and equivalents were $271.80M, separating immediately recognizable cash resources from the rest of the current-asset base. Measured only with cash and equivalents, coverage of current liabilities was 2.9%, excluding receivables and other current assets. The company carried $8.80B of total debt at period end, which frames its leverage and debt-service burden. The debt-to-assets relationship was 45.5%, comparing borrowing with the total asset balance. Liabilities represented 117.6% of total assets, quantifying the liability-funded share of the company’s resource base. The cash-to-assets relationship was 1.4%, comparing reported cash and equivalents with the full positive asset balance.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $3.12B, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. Operating cash flow equaled 1.25x of net income, showing how strongly accounting earnings converted into cash from operations. The cash-flow statement records $1.33B of capital expenditures, the investment amount considered after operating cash generation. Relative to operating cash flow, capital expenditures measured 42.6%, connecting investment intensity with the company’s cash-generation base. After capital spending, free cash flow was $1.79B, leaving cash available for debt reduction, shareholder returns, or further investment. Free cash flow represented 9.5% of revenue, linking post-investment cash generation with the company’s operating scale. Measured against total assets, free cash flow represented 9.2%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Aug 30, 2025. Analysis generated Oct 21, 2026.