What does EBITDA margin mean?

Operating cash profitability per sales dollar, before interest, taxes, and non-cash charges.

How do you interpret EBITDA margin?

Useful for comparing operating profitability across firms with different depreciation policies and leverage. High EBITDA margin alongside heavy capex can still mean weak free cash flow — pair it with FCF margin.

How does EBITDA margin compare across companies?

Widely used to compare capital-intensive businesses on a like-for-like basis. Less meaningful for banks and insurers.

AutoZone AZO EBITDA margin

Discontinued — last reported Q4 '14

EBITDA margin at other companies

Genuine PartsGPC

7%-1.2pp

Walmart WMT

6.2%-0.1pp

O'Reilly AutomotiveORLY

22.4%+0.4pp

AmazonAMZN

19.6%0.0pp

Penske Automotive GroupPAG

4.5%-0.3pp

Lowe's CompaniesLOW

14.2%-0.6pp

Other financials

Income statement

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Revenue$4.8B+8.4%

Gross profit$2.5B+7.3%

Operating income$923.8M+6.6%

Net income$641.5M+5.4%

EPS (diluted)$38.07+7.7%

Balance sheet

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Cash & equivalents$253.7M-5.5%

Total debt$12.6B+3.6%

Total equity-$2.8B+29.9%

Total assets$20.9B+12.3%

Cash flow

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Operating cash flow$2.1B-2.1%

CapEx$997.5M+12.6%

Free cash flow$1.1B-12.3%

Valuation

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Market cap$50.03B-22.3%

Enterprise value$62.41B-18.0%

P/E20.2×-4.9×

P/S2.5×-0.9×

Profitability

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Gross margin51.8%-1.2pp

Operating margin18%-1.6pp

Net margin12.4%-1.2pp

FCF margin25.6%—

Returns & leverage

See full

Return on equity-73.3%—

Debt / equity-4.5×—

Current ratio0.9×0.0×

Where this comes from

Calculated from AutoZone’s reported figures.

ebitda/total revenue=22%

Based on trailing twelve months.

The official record: AutoZone’s 10-K, filed October 25, 2017, on SEC EDGAR. View the filing →

Questions, answered.

What does EBITDA margin mean?: Operating cash profitability per sales dollar, before interest, taxes, and non-cash charges.
How do you interpret EBITDA margin?: Useful for comparing operating profitability across firms with different depreciation policies and leverage. High EBITDA margin alongside heavy capex can still mean weak free cash flow — pair it with FCF margin.
How does EBITDA margin compare across companies?: Widely used to compare capital-intensive businesses on a like-for-like basis. Less meaningful for banks and insurers.