AutoZone, Inc.
Automotive Parts and Accessories RetailFounded 1979- Updated July 2025
Reviewed by Swet Parvadiya
Last reviewed: July 2025
CorpDigest
AutoZone, Inc.
Financial Performance
Last reviewed: July 2025 · By Swet Parvadiya
Revenue
$17.18B
Market Cap
$54.0B
Net Income
$2.4B
Employees
79,000
The company has repurchased approximately $35 billion of its own stock over that period, converting operating cash flow into per-share earnings growth with a discipline that Warren Buffett has publicly praised. The company generated $17.18 billion in net sales for the fiscal year ended August 31, 2024 — a 5.7% increase from the prior year — by operating 7,140 stores across the United States, Mexico, and Brazil. The company turns inventory 1.5 times per year but pays suppliers on 60-90 day terms, generating $2.85 billion in annual cash from operations that is structurally separate from net income. Revenue grew from $15.88 billion in FY2022 to $17.18 billion in FY2024, steady 5-8% annual growth that tracks the age of the US vehicle fleet — older vehicles require more parts and maintenance, and the average vehicle age in the US has been rising for over a decade. Net income of $2.39 billion represents a 13.9% net margin on retail revenue, exceptional for a business with physical stores and inventory overhead. Market capitalization of approximately $54 billion against $17.18 billion in revenue prices AutoZone at 3.1x revenue — modest for a company with 13.9% net margins and a compounding buyback program. The buyback arithmetic is important: at this pace of share retirement, earnings per share grow materially faster than total net income, and the company has delivered EPS growth in excess of net income growth for two decades.
Revenue Trend Analysis
YoY Change
+5.7%
2-Year CAGR
+4%
Peak Year
2024
Trend
Consistent Growth
AutoZone, Inc. has reported revenue across 3 fiscal years, compounding at +4% annually over 2 years. The most recent year saw a 5.7% increase versus the prior year. Revenue peaked in 2024 at $17.2B. Out of 2 reported periods, 2 showed growth and 0 showed a decline.
| Fiscal Year | Revenue | Net Income | YoY Change |
|---|---|---|---|
| FY2024 | $17.2B | $2.4B | +5.7% |
| FY2023 | $16.3B | — | +2.3% |
| FY2022 | $15.9B | — | — |
Source: SEC EDGAR filings, annual earnings releases, and verified financial disclosures.
Click any row to see year details.
AutoZone achieves $2.39 billion net income through 52-53% gross margins on auto parts with minimal markdown pressure, combined with efficient SG&A of 30-31% of revenue driven by store-level labor productivity and minimal advertising (primarily social media and targeted digital). Operating margins of 20-21% are exceptional for retail, reflecting auto parts' non-discretionary demand patterns (cars must be repaired) and the company's pricing power in emergency purchase situations. The company also benefits from vendor payment terms—collecting cash from customers immediately while paying suppliers on 35-45 day terms—creating negative working capital that funds operations and reduces capital requirements, improving ROIC above 50%.
AutoZone's share repurchase program has returned $35+ billion to shareholders since 1998 by reducing outstanding shares from 150+ million to under 20 million, driving EPS from $1.50 in 1998 to $140+ by 2024 through a combination of earnings growth and share count reduction. The strategy works because AutoZone consistently generates 50%+ return on invested capital in its core business, but new store growth absorbs only $1-2 billion annually—leaving substantial excess cash to buy back stock when management believes shares trade below intrinsic value. Critics note the company carries $14 billion in debt to fund buybacks, but with interest coverage above 8x and stable auto parts cash flows, the leveraged buyback strategy has created exceptional long-term returns.
AutoZone's negative working capital means the company collects cash from consumers at point-of-sale while paying suppliers 35-45 days later, effectively receiving free short-term financing from vendors. At any given time, AutoZone holds approximately $2-3 billion in payables exceeding its inventory, meaning suppliers fund the company's inventory rather than AutoZone borrowing to finance stock. This model, common among large retailers, reduces capital requirements and improves ROIC, and AutoZone's massive purchasing scale—buying billions in parts annually—gives it leverage to negotiate extended payment terms that smaller competitors cannot obtain, creating a structural cash flow advantage that supports the buyback program.
AutoZone's international operations (Mexico: 800+ stores, Brazil: 100+ stores) generate lower absolute margins than the US business due to higher import duties, currency translation headwinds, and build-out costs for newer markets, but deliver superior comparable-store sales growth of 8-12% annually versus US comps of 3-5%. Mexico is a mature market with 20+ year operating history approaching US-level profitability, while Brazil remains in early-growth mode with 100 stores versus the 700+ that would achieve scale economics. International now contributes approximately $2.5 billion in revenue with improving returns, and management expects Brazil alone to support 500+ stores, making international a significant long-term growth driver that complements the maturing but highly cash-generative US business.
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CorpDigest. "AutoZone, Inc. Revenue & Financials." CorpDigest, https://corpdigest.com/company/autozone/financials.<div style="font-family:system-ui,sans-serif;font-size:14px;line-height:1.5;border:1px solid #e2e8f0;border-radius:8px;padding:12px 16px;max-width:520px"><strong>AutoZone, Inc. reported $17B in revenue (FY2024).</strong><br>Source: <a href="https://corpdigest.com/company/autozone/financials" target="_blank" rel="noopener">CorpDigest — AutoZone, Inc. financials</a></div>