AutoZone's ROCE Trend a Compounding Machine

AutoZone's shareholders are optimistic about the company's potential to multiply in value due to its high return on capital employed (ROCE) of 37%, which is higher than the industry average of 14%. The company has also been able to consistently reinvest its earnings at high rates of return, making it a compounding machine. However, there are concerns about the company's high current liabilities to total assets ratio of 49%, which may pose risks for the business.