AutoZone, Inc. — Earnings Quality Grade F
AZO · Consumer Cyclical
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 13 days, change +2 days YoY
AR growth 22.8% exceeds revenue growth 2.4%
Revenue 2.4%, CFFO 3.8%. Cash follows revenue
Expense Quality
Inventory 14.1% vs COGS 3.4%. Normal
CapEx growth 23.7% is >2x revenue growth 2.4%
SG&A/Gross Profit = 63.8%. Normal
Gross margin 52.6%, change -0.5pp. Stable
Cash Flow Quality
CFFO/NI = 1.25. Profits backed by cash
FCF $1.8B, FCF/NI = 0.72
Accruals ratio = -3.2%. Low accruals
Cash $0.3B covers only 2% of debt $12.3B
Balance Sheet Health
Goodwill+Intangibles $0.3B = -9% of equity. Manageable
Debt/EBITDA = 2.9x. Healthy
Other assets grew 38.6% vs revenue 2.4%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 0% YoY. Normal
Manipulation Score
M-Score = -2.37 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10