Autozone will likely see some significant downward movements in the coming months, as there are several factors that are applying headwinds for the business. This includes higher commodity prices, lower consumer purchasing power, and higher employee costs which will put substantial pressure on both the top and bottom lines.
Additionally, AZO has high debt (including a current ratio under 1) while moving into a higher rate environment - meaning that they will have a higher cost to service any new and existing debt.
On top of this, high gasoline prices will either cause people to utilize their car less, or will further reduce consumer savings all of which will make people move away from pulling the trigger on costly auto repairs.
Additionally, AZO has high debt (including a current ratio under 1) while moving into a higher rate environment - meaning that they will have a higher cost to service any new and existing debt.
On top of this, high gasoline prices will either cause people to utilize their car less, or will further reduce consumer savings all of which will make people move away from pulling the trigger on costly auto repairs.