Advance Auto Parts Inc (AAP)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 4,523,500 | 4,932,240 | 4,928,750 | 4,481,610 | 4,254,750 |
| Revenue | US$ in thousands | 11,284,200 | 11,142,900 | 10,996,300 | 10,051,400 | 9,707,300 |
| Gross profit margin | 40.09% | 44.26% | 44.82% | 44.59% | 43.83% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $4,523,500K ÷ $11,284,200K
= 40.09%
Advance Auto Parts Inc's gross profit margin has shown a decreasing trend over the past five years, from 43.83% in 2019 to 40.09% in 2023. This indicates that the company's cost of goods sold relative to its revenue has been increasing, resulting in a lower percentage of revenue retained as gross profit. The highest gross profit margin was observed in 2021 at 44.82%, followed by 44.59% in 2020 and 44.26% in 2022. The decline in gross profit margin may warrant further investigation into the company's cost management strategies and pricing decisions to ensure sustained profitability.
Peer comparison
Dec 31, 2023