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
Company name
Symbol
Gross profit margin
Advance Auto Parts Inc
AAP
40.09%
AutoZone Inc
AZO
53.09%
MarineMax Inc
HZO
32.96%
O’Reilly Automotive Inc
ORLY
51.91%