Advance Auto Parts Inc (AAP)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -713,306 | 114,377 | 714,151 | 838,717 | 749,907 |
| Revenue | US$ in thousands | 9,094,330 | 11,287,600 | 11,154,700 | 10,998,000 | 10,106,300 |
| Operating profit margin | -7.84% | 1.01% | 6.40% | 7.63% | 7.42% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $-713,306K ÷ $9,094,330K
= -7.84%
Advance Auto Parts Inc's operating profit margin has fluctuated over the years based on the provided data. In December 31, 2020, the operating profit margin was at 7.42%, slightly increasing to 7.63% by December 31, 2021. However, there was a notable decrease to 6.40% by December 31, 2022, indicating potential challenges in managing operating expenses.
The operating profit margin experienced a significant decline to 1.01% by December 31, 2023, signaling a potential decrease in profitability relative to revenue. The most recent data point shows a negative operating profit margin of -7.84% by December 31, 2024, which could indicate operational inefficiencies or significant financial challenges impacting the company.
Overall, the fluctuating trend in Advance Auto Parts Inc's operating profit margin raises concerns about the company's ability to effectively manage costs and generate profits from its operations. Further analysis of the company's cost structure and revenue streams may be necessary to address these fluctuations and improve profitability in the future.
Peer comparison
Dec 31, 2024