Net Income Rises to $864.8 Million in Q4, Reaching $2.5 Billion for the Fiscal Year
AutoZone,(AZO) a leading autom otive parts and accessories retailer, has announced impressive financial results for the fourth quarter of fiscal 2023. The company reported a net income of $864.8 million for the 16 weeks ending on August 26, 2023, marking a significant increase compared to the same period last year when the net income was $810.0 million.
Revenue Growth in Fiscal 2023
Throughout fiscal 2023, AutoZone experienced robust revenue growth, with net sales reaching $17.5 billion. This represents a notable increase from the previous fiscal year, during which the company reported net sales of $16.3 billion.
Strong Fiscal Performance
AutoZone's fiscal 2023 financial results reflect a thriving business, with impressive profitability and operational efficiency. Here's a breakdown of the key financial highlights:
Gross Profit
The company's gross profit for the 16-week period ending on August 26, 2023, reached $3.0 billion, demonstrating a steady increase from the same period in the previous fiscal year when it was $2.8 billion.
AutoZone's operating profit, also known as Earnings Before Interest and Taxes (EBIT), rose to $1.2 billion during the fourth quarter of fiscal 2023, compared to $1.1 billion in the same quarter of the previous year.
Net Income per Share
The net income per share for AutoZone's shareholders increased to $47.83 for the fourth quarter of fiscal 2023, up from $41.81 in the same period in 2022.
Fiscal Year Performance
For the entire fiscal year 2023, AutoZone's net sales amounted to $17.5 billion, showcasing steady growth from $16.3 billion in fiscal 2022. The company's net income for the full fiscal year reached $2.5 billion, compared to $2.4 billion in fiscal 2022.
Balance Sheet Highlights
AutoZone maintains a strong balance sheet, with substantial cash and cash equivalents of $277.1 million as of August 26, 2023. The company's total assets stood at $15.99 billion, reflecting its financial stability and capacity to invest in future growth opportunities.
Adjusted Debt and Return on Invested Capital (ROIC)
AutoZone's adjusted debt to EBITDAR ratio remained favorable at 2.3, indicating effective management of its financial obligations. The company also reported an impressive adjusted after-tax ROIC of 55.4%, demonstrating its ability to generate substantial returns on invested capital.
Share Repurchases
AutoZone has consistently demonstrated its commitment to returning value to shareholders. Cumulative share repurchases since fiscal 1998 have reached $33.8 billion, with a remaining share repurchase authorization of $1.8 billion.
Capital Investment and Cash Flow
During fiscal 2023, AutoZone invested in capital spending, totaling $796.7 million, reinforcing its commitment to enhancing its operations and services. The company's robust cash flow from operations amounted to $2.9 billion, showcasing its strong financial position.
AutoZone's fourth-quarter and fiscal 2023 results reflect its ongoing commitment to delivering value to customers and shareholders while maintaining a solid financial foundation. The company's strong performance and strategic investments position it for continued growth in the competitive automotive retail industry.