Advance Auto Parts Inc (AAP)
Net profit margin
| Dec 31, 2023 | Oct 7, 2023 | Jul 15, 2023 | Apr 22, 2023 | Dec 31, 2022 | Oct 8, 2022 | Apr 23, 2022 | Dec 31, 2021 | Oct 9, 2021 | Jul 17, 2021 | Apr 24, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jul 11, 2020 | Apr 18, 2020 | Dec 31, 2019 | Oct 5, 2019 | Jul 13, 2019 | Apr 20, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 29,736 | 179,941 | 357,859 | 333,722 | 367,068 | 421,803 | 484,618 | 616,108 | 646,435 | 624,098 | 635,362 | 517,634 | 501,545 | 477,738 | 412,598 | 486,896 | 444,430 | 436,604 | 429,620 | 423,847 |
| Revenue (ttm) | US$ in thousands | 11,284,210 | 11,292,080 | 11,214,340 | 11,895,070 | 10,872,760 | 11,024,650 | 11,032,730 | 10,996,300 | 10,959,250 | 10,879,950 | 10,731,910 | 10,099,420 | 9,853,800 | 9,623,980 | 9,454,850 | 9,709,010 | 9,701,470 | 9,664,340 | 9,658,740 | 9,580,550 |
| Net profit margin | 0.26% | 1.59% | 3.19% | 2.81% | 3.38% | 3.83% | 4.39% | 5.60% | 5.90% | 5.74% | 5.92% | 5.13% | 5.09% | 4.96% | 4.36% | 5.01% | 4.58% | 4.52% | 4.45% | 4.42% |
December 31, 2023 calculation
Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $29,736K ÷ $11,284,210K
= 0.26%
The net profit margin of Advance Auto Parts Inc has exhibited fluctuations over the past years. The margin represents the percentage of each dollar of revenue that results in net income after accounting for all expenses. In Dec 2023, the net profit margin was 0.26%, which was relatively low compared to historical figures. This suggests that the company's profitability was under pressure during this period, possibly due to increased expenses or lower revenue generation.
Looking back at previous quarters, the net profit margin has shown a declining trend from 5.60% in Dec 2021 to 0.26% in Dec 2023. This downward trend could indicate challenges in maintaining profitability or inefficiencies in cost management. It is worth noting that the net profit margin reached a peak of 5.90% in Oct 2021, indicating a period of higher profitability for the company.
Analyzing the historical data, the net profit margin has generally ranged between 4% to 6% over the past few years, with occasional fluctuations. Investors and stakeholders should closely monitor the company's efforts to improve profitability through cost controls, revenue growth strategies, and operational efficiencies to ensure sustained financial health and value creation.
Peer comparison
Dec 31, 2023