Gross Margin % is calculated as gross profit divided by its revenue. AutoZone's Gross Profit for the
three
months ended in Feb. 2024 was $2,080 Mil. AutoZone's Revenue for the
three
months ended in Feb. 2024 was $3,859 Mil. Therefore, AutoZone's Gross Margin % for the quarter that ended in Feb. 2024 was 53.89%.
The historical rank and industry rank for AutoZone's Gross Margin % or its related term are showing as below:
AZO'
s Gross Margin % Range Over the Past 10 Years
Min: 51.96 Med: 52.73 Max: 53.65
Current: 52.94
During the past 13 years, the highestGross Margin % of AutoZone was 53.65%. The lowest was 51.96%. And the median was 52.73%.
AZO's Gross Margin % is ranked better than 77.37% of 1096
companies
in the Retail - Cyclical industry
Industry Median: 36.74
vs AZO: 52.94
AutoZone had a gross margin of 53.89% for the quarter that ended in Feb. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for AutoZone was -0.60% per year.
AutoZone Gross Margin % Historical Data
The historical data trend for AutoZone's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Specialty Retail subindustry, AutoZone's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
AutoZone Gross Margin % Distribution
For the Retail - Cyclical industry and Consumer Cyclical sector, AutoZone's Gross Margin % distribution charts can be found below:
* The bar in red indicates where AutoZone's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
AutoZone (NYSE:AZO) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
AutoZone had a gross margin of 53.89% for the quarter that ended in Feb. 2024 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
AutoZone Gross Margin % Related Terms
Thank you for viewing the detailed overview of AutoZone's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
AutoZone is the premier seller of aftermarket automotive parts, tools, and accessories to do-it-yourself customers in the United States. The company derives an increasing proportion of its sales from domestic commercial customers, although its presence in its home market is still dominated by its do-it-yourself operation, which accounts for around 70% of sales in country. AutoZone also has a growing presence in Mexico and Brazil. AutoZone had 7,140 stores in the U.S. (6,300), Mexico (740), and Brazil (100) as of the end of fiscal 2023.
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