Advance Auto Parts Inc (AAP)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 29,735 | 464,402 | 616,108 | 493,021 | 486,896 |
| Revenue | US$ in thousands | 11,284,200 | 11,142,900 | 10,996,300 | 10,051,400 | 9,707,300 |
| Net profit margin | 0.26% | 4.17% | 5.60% | 4.90% | 5.02% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $29,735K ÷ $11,284,200K
= 0.26%
The net profit margin of Advance Auto Parts Inc has experienced a downward trend over the past five years. In 2023, the net profit margin plummeted to 0.26%, a significant decrease from the previous year's figure of 4.17%. This decline signifies a substantial reduction in the proportion of net income generated from sales in 2023.
Comparing the latest net profit margin to that of 2019 (5.02%), it is evident that the company's profitability has weakened considerably over this period. The decreasing trend in net profit margin may indicate challenges faced by Advance Auto Parts Inc in efficiently managing costs and generating profits in recent years. Further analysis and investigation into the company's operational efficiency and cost structures may be necessary to understand the factors contributing to this declining trend in profitability.
Peer comparison
Dec 31, 2023