As a loan officer what ratio levels would you set for AutoZone and Advanced Auto Parts? AND WHY?
EBITDA for AutoZone in 2018: 22.1%
EBITDA for Advanced Auto Parts in 2018: 10.1%
AutoZone lease Term annual lease pmt. discount rate 263,439 5.5% PV of lease Pmts. $974,179.13 AutoZone 8/31/15 8/31/16 8/31/17 8/31/18 Sum Finance Lease also called Capital Lease Outstanding Debt Pmt Int. Exp. Prin. Red. $974,179 263,439 39,091 224,348 $749,831 263,439 26,752 236,687 $513,144 263,439 13,734 249,705 $263,439 263,439 (0) 263,439 $2,500,593 1,053,755 79,576 974,179 Dep/ Amort Exp Total Exp. 243,545 282,636 243,545 270,296 243,545 257,279 243,545 243,545 974,179 1,053,755 Operating Lease 8/31/15 8/31/16 8/31/17 8/31/18 Sum Outstanding Debt $974,179 $749,831 $513,144 $263,439 $2,500,593 Pmt 263,439 263,439 263,439 263,439 1,053,755 Int. Exp. 39,091 26,752 13,734 (0) 79,576 Prin. Red. 224,348 236,687 249,705 263,439 974,179 Dep/ Amort Exp Total Exp. 224,348 263,439 236,687 263,439 249,705 263,439 263,439 263,439 974,179 1,053,755 Advanced Auto Parts lease Term annual lease pmt. 407,767 discount rate 5.5% PV of lease Pmts. $1,507,894.46 Advanced Auto Parts Finance Lease also called Capital Lease Outstanding Debt Pmt Int. Exp. Prin. Red. 12/31/15 $1,507,894 407,767 60,507 347,260 12/31/16 $1,160,635 407,767 41,408 366,359 12/31/17 $794,276 407,767 21,258 386,509 12/31/18 $407,767 407,767 (0) 407,767 Sum $3,870,572 1,631,067 123, 173 1,507,894 Dep/ Amort Exp Total Exp. 376,974 437,481 376,974 418,381 376,974 398,232 376,974 376,974 1,507,894 1,631,067 Operating Lease 12/31/15 12/31/16 12/31/17 12/31/18 Sum Outstanding Debt $1,507,894 $1,160,635 $794,276 $407,767 $3,870,572 Pmt 407,767 407,767 407,767 407,767 1,631,067 Int. Exp. 60,507 41,408 21,258 (0) 123, 173 Prin. Red. 347,260 366,359 386,509 407,767 1,507,894 Dep/ Amort Exp Total Exp. 347,260 407,767 366,359 407,767 386,509 407,767 407,767 407,767 1,507,894 1,631,067 AutoZone lease Term annual lease pmt. discount rate 263,439 5.5% PV of lease Pmts. $974,179.13 AutoZone 8/31/15 8/31/16 8/31/17 8/31/18 Sum Finance Lease also called Capital Lease Outstanding Debt Pmt Int. Exp. Prin. Red. $974,179 263,439 39,091 224,348 $749,831 263,439 26,752 236,687 $513,144 263,439 13,734 249,705 $263,439 263,439 (0) 263,439 $2,500,593 1,053,755 79,576 974,179 Dep/ Amort Exp Total Exp. 243,545 282,636 243,545 270,296 243,545 257,279 243,545 243,545 974,179 1,053,755 Operating Lease 8/31/15 8/31/16 8/31/17 8/31/18 Sum Outstanding Debt $974,179 $749,831 $513,144 $263,439 $2,500,593 Pmt 263,439 263,439 263,439 263,439 1,053,755 Int. Exp. 39,091 26,752 13,734 (0) 79,576 Prin. Red. 224,348 236,687 249,705 263,439 974,179 Dep/ Amort Exp Total Exp. 224,348 263,439 236,687 263,439 249,705 263,439 263,439 263,439 974,179 1,053,755 Advanced Auto Parts lease Term annual lease pmt. 407,767 discount rate 5.5% PV of lease Pmts. $1,507,894.46 Advanced Auto Parts Finance Lease also called Capital Lease Outstanding Debt Pmt Int. Exp. Prin. Red. 12/31/15 $1,507,894 407,767 60,507 347,260 12/31/16 $1,160,635 407,767 41,408 366,359 12/31/17 $794,276 407,767 21,258 386,509 12/31/18 $407,767 407,767 (0) 407,767 Sum $3,870,572 1,631,067 123, 173 1,507,894 Dep/ Amort Exp Total Exp. 376,974 437,481 376,974 418,381 376,974 398,232 376,974 376,974 1,507,894 1,631,067 Operating Lease 12/31/15 12/31/16 12/31/17 12/31/18 Sum Outstanding Debt $1,507,894 $1,160,635 $794,276 $407,767 $3,870,572 Pmt 407,767 407,767 407,767 407,767 1,631,067 Int. Exp. 60,507 41,408 21,258 (0) 123, 173 Prin. Red. 347,260 366,359 386,509 407,767 1,507,894 Dep/ Amort Exp Total Exp. 347,260 407,767 366,359 407,767 386,509 407,767 407,767 407,767 1,507,894 1,631,067
