AZONEUTRAL

AZO Debt-to-Equity Ratio Analysis

-3.24x

Higher than 2% of Consumer Cyclical sector peers

Updated 410h ago·SEC filings & market data

Key Takeaway

AutoZone’s debt-to-equity ratio of -3.24x means the company’s total liabilities exceed its shareholders’ equity, resulting in a negative equity position.

Sector Performance

2th percentile

AZO

-3.24x

Sector Median

0.47x

Sector Avg

1.52x

Prior Period

-4.42x(Jun 2026)

↓ Declining

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Deep Analysis

AutoZone’s debt-to-equity ratio of -3.24x means the company’s total liabilities exceed its shareholders’ equity, resulting in a negative equity position.

This typically signals high financial leverage and risk, as the company owes more than its net asset value. Among Consumer Cyclical peers, the sector median is 0.47x, and AutoZone ranks in the 2nd percentile, indicating it uses far more debt relative to equity than almost all comparable companies. The year-over-year change is not available, but the ratio improved 26.7% quarter-over-quarter, moving from -4.42x to -3.24x, which means the negative equity gap is narrowing. The combination of a severely negative ratio with a recent improvement suggests the company is highly leveraged but may be reducing its risk profile, presenting both potential opportunity if the trend continues and elevated risk if it reverses. This metric partially supports the overall NEUTRAL verdict: the extreme debt level contradicts a bullish stance, while the improving trend prevents a bearish downgrade, keeping the assessment balanced.

Frequently Asked Questions

What does the Debt-to-Equity Ratio tell investors about AZO?

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.

How is the Debt-to-Equity Ratio calculated?

Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.

How does AZO's Debt-to-Equity Ratio compare to its sector?

AZO's Debt-to-Equity Ratio of -3.24x compares to a Consumer Cyclical sector median of 0.47x, placing it in the 2th percentile.

Who are AZO's closest peers by Debt-to-Equity Ratio?

The closest Consumer Cyclical peers by Debt-to-Equity Ratio include: BBY (0.38x), BABA (0.25x), PHM (0.18x), LI (0.14x), YETI (0.11x).

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Learn More About Debt-to-Equity Ratio

How to Spot a Debt Problem Before It Hits the Stock Price

Learn how to spot a debt problem in stocks using D/E, interest coverage, and net debt/EBITDA ratios. Real examples from META and MSFT, plus danger thresholds you need to know.

Debt/Equity Ratio: How Much Debt Is Too Much?

The debt to equity ratio explained: why context, interest coverage, and sector norms matter far more than the raw number when assessing debt risk.

The Formula

Total Debt / Shareholders' Equity

Why It Matters

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.