Advance Auto Parts Inc (AAP)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 3,408,520 | 4,523,500 | 4,962,100 | 4,928,750 | 4,481,610 |
| Revenue | US$ in thousands | 9,094,330 | 11,287,600 | 11,154,700 | 10,998,000 | 10,106,300 |
| Gross profit margin | 37.48% | 40.07% | 44.48% | 44.81% | 44.34% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $3,408,520K ÷ $9,094,330K
= 37.48%
The gross profit margin of Advance Auto Parts Inc has shown a consistent trend over the past five years. It increased from 44.34% as of December 31, 2020, to 44.81% by December 31, 2021. However, there was a slight decline to 44.48% by December 31, 2022.
Subsequently, there was a significant drop in the gross profit margin to 40.07% by December 31, 2023, followed by a further decrease to 37.48% by December 31, 2024. This downward trend indicates challenges in maintaining profitability relative to the cost of goods sold.
It is important for Advance Auto Parts Inc to closely monitor and manage its cost structure and pricing strategies to improve its gross profit margin and overall financial performance.
Peer comparison
Dec 31, 2024