Business Analysis of AutoZone

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of AutoZone

AUTOZONE

Business Overview

AutoZone, Inc. retails and distributes automotive replacement parts and accessories. It offers various products for cars, sport utility vehicles, vans, and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. The company also provides A/C compressors, batteries and accessories, belts and hoses, calipers, carburetors, chassis, clutches, CV axles, engines, fuel pumps, fuses, ignition and lighting products, mufflers, radiators, thermostats, starters and alternators, and water pumps. In addition, it offers maintenance products comprising antifreeze and windshield washer fluids; brake drums, rotors, shoes, and pads; brake and power steering fluids, and oil and fuel additives; oil and transmission fluids; oil, air, fuel, and transmission filters; oxygen sensors; paints and accessories; refrigerants and accessories; shock absorbers and struts; spark plugs and wires; and windshield wipers, as well as discretionary products, such as air fresheners, cell phone accessories, drinks and snacks, floor mats and seat covers, interior and exterior accessories, mirrors, performance products, protectants and cleaners, sealants and adhesives, steering wheel covers, stereos and radios, tools, and wash and wax products. Further, the company provides a sales program that offers commercial credit and delivery of parts and other products. Additionally, it sells automotive diagnostic and repair software under the ALLDATA brand through alldata.com and alldatadiy.com; automotive hard parts, maintenance items, accessories, and non-automotive products through autozone.com; and accessories, performance, and replacement parts through autoanything.com. As of February 28, 2017, the company operated 5,346 stores in the United States, including Puerto Rico; 491 stores in Mexico; 9 stores in Brazil; and 26 Interamerican Motor Corporation branches. AutoZone, Inc. was founded in 1979 and is based in Memphis, Tennessee.

AutoZone

AutoZone


R&P Rank: 279
Sector: Automobiles and Parts
Industry:Auto Parts
H.Q Location:Tennessee
Website: www.autozone.com
Company Address:
123 SOUTH FRONT ST, MEMPHIS TN 38103
Ph:901-495-6500

Business Analysis of AutoZone

The Automobiles and Parts Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how AutoZone compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by AutoZone to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of AutoZone with an interactive chart.

  1. Revenue Growth: AutoZone reported a revenue growth of 4.4% year-on-year during 2016. Auto Parts Industry grew at 1.1% in the same period
  2. COGS share of Revenues: As a percentage of revenue, AutoZone spent 47.3% of its total revenues on COGS. Auto Parts industry average (COGS share of revenue) in the same period was 74.6%
  3. R&D share of Revenues: AutoZone R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, AutoZone spent 33.4% of its total revenues on Sales, Marketing, and General Administration (SG&A). Auto Parts industry average SG&A spending in the same period was 13.9%
  5. Inventory share of Revenues: As a percentage of revenue, AutoZone spent 34.1% of its total revenues on Inventories. Auto Parts industry average Inventory spending in the same period was 14.7%
  6. Accounts Payable share of Revenues: As a percentage of revenue, AutoZone invested 38.5% of its total revenues on Accounts Payable (A/P) Auto Parts industry average Accounts Payable investment in the same period was 17.5%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, AutoZone invested 2.7% of its total revenues on Accounts Receivable (A/R). Auto Parts industry average Accounts Receivable investment in the same period was 12.8%
  8. PP&E share of Revenues: As a percentage of revenue, AutoZone invested 41.0% of its total revenues on Property, Plants, and Equipments (PP&E). Auto Parts industry average PPE investment in the same period was 21.0%
  9. Intangibles share of Revenues: AutoZone Intangibles share of Revenues details are not available because either company does not share the data or we do not have it
  10. Net Margins: AutoZone Net Margins in the year 2016 were 11.7%. Auto Parts industry average Net Margins in the same period were 5.3%

Sector and Industry Association of AutoZone

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

AutoZone is associated with Industrials Sector Group, Automobiles and Parts Sector, and Auto Parts Industry.

Automobiles and Parts sector is comprised of the following industries: Automobiles; Auto Parts. The definitions for each of the industries is as follows:

  • Automobiles industry includes manufacturers of passenger vehicle that includes Cars, SUVs etc. and recreational vehicles including motorcycles like Harley Davidson. Companies making boats and other recreational vehicles are also part of Automobiles industry.
  • Auto Parts industry includes manufacturers and distributors of automobile parts including engines, batteries and also tires.

Industry Ranking of AutoZone

With $10.6 billion revenues, AutoZone ranked number 6 of all the companies in the US Auto Parts industry. There were a total of 38 public companies in the US Auto Parts industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Auto Parts industry by revenues during 2016 were:

  1. Lear ($18.6 billion)
  2. Adient ($16.8 billion)
  3. Delphi Automotive ($16.7 billion)
  4. Genuine Parts ($15.3 billion)
  5. Goodyear Tire & Rubber ($15.2 billion)
  6. AutoZone ($10.6 billion)
  7. Autoliv ($10.1 billion)
  8. Advance Auto Parts ($9.6 billion)
  9. BorgWarner ($9.1 billion)
  10. Tenneco ($8.6 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of AutoZoneand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of autozone

Delphi Automotive (DLPH) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Delphi Automotive Plc with $17 billion revenues in the year 2016 was the number 3 Auto Parts company. Read this report to know the top competitors of Delphi Automotive and identify growth and cost optimization opportunities of Delphi Automotive

Genuine Parts (GPC) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Genuine Parts Co with $15 billion revenues in the year 2016 was the number 4 Auto Parts company. Read this report to know the top competitors of Genuine Parts and identify growth and cost optimization opportunities of Genuine Parts

Goodyear Tire & Rubber (GT) Business Analysis – Analyze Historical Performance,...

Goodyear Tire & Rubber Co with $15 billion revenues in the year 2016 was the number 5 Auto Parts company. Read this report to know the top competitors of Goodyear Tire & Rubber and identify growth and cost optimization opportunities of Goodyear Tire & Rubber

Autoliv (ALV) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Autoliv Inc with $10 billion revenues in the year 2016 was the number 7 Auto Parts company. Read this report to know the top competitors of Autoliv and identify growth and cost optimization opportunities of Autoliv

Advance Auto Parts (AAP) Business Analysis – Analyze Historical Performance, Strategic...

Advance Auto Parts Inc with $10 billion revenues in the year 2016 was the number 8 Auto Parts company. Read this report to know the top competitors of Advance Auto Parts and identify growth and cost optimization opportunities of Advance Auto Parts

BorgWarner (BWA) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Borgwarner Inc with $9 billion revenues in the year 2016 was the number 9 Auto Parts company. Read this report to know the top competitors of BorgWarner and identify growth and cost optimization opportunities of BorgWarner

Revenues Analysis

AutoZone (AZO) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of AutoZone Inc (AZO) from 2012 to 2016. AutoZone generated a total of $10.6 billion revenues during 2016. AutoZone reported a revenue growth of 4.4% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

AutoZone (AZO) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of AutoZone Inc (AZO) from 2002 to 2016. AutoZone generated a total of $10.6 billion revenues during 2016. AutoZone reported a revenue growth of 4.4% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

AutoZone (AZO) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of AutoZone Inc (AZO) revenue growth with Auto Parts industry growth during the last five years from 2012 to 2016. AutoZone reported a revenue growth of 4.4% year-over-year during 2016. The Auto Parts industry growth was 1.1% year-over-year during 2016. AutoZone growth was faster than the industry during 2016.

Profit Analysis

AutoZone (AZO) Net Profit And Net Margin From 2012 To 2016

This report provides the last five years net profit and net margin of AutoZone Inc (AZO) from 2012 to 2016. AutoZone reported a total net income of $1.2 billion during 2016. AutoZone generated a total of $10.6 billion revenues during 2016. AutoZone net profit margin was 11.7% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.