Advance Auto Parts Inc (AAP)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 114,378 | 319,115 | 551,089 | 628,399 | 642,923 | 715,951 | 789,858 | 838,717 | 878,081 | 905,694 | 923,611 | 749,907 | 724,220 | 639,737 | 547,664 | 677,179 | 635,293 | 617,206 | 613,975 | 604,276 |
| Total assets | US$ in thousands | 12,276,300 | 12,249,200 | 12,299,200 | 12,177,300 | 11,986,400 | 12,129,300 | 12,002,500 | 12,194,200 | 11,864,200 | 11,838,700 | 11,868,500 | 11,839,600 | 11,972,800 | 11,930,700 | 12,072,600 | 11,248,500 | 11,106,800 | 11,267,900 | 11,081,500 | 9,040,650 |
| Operating ROA | 0.93% | 2.61% | 4.48% | 5.16% | 5.36% | 5.90% | 6.58% | 6.88% | 7.40% | 7.65% | 7.78% | 6.33% | 6.05% | 5.36% | 4.54% | 6.02% | 5.72% | 5.48% | 5.54% | 6.68% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $114,378K ÷ $12,276,300K
= 0.93%
Operating return on assets (ROA) is a key financial ratio that indicates how efficiently a company is generating profits from its assets used in its core operations. In the case of Advance Auto Parts Inc, the operating ROA has shown fluctuations over the past five years, ranging from 4.54% to 7.78%.
Overall, Advance Auto Parts Inc's operating ROA has typically ranged between 4.54% and 7.78% over the past five years, indicating that the company has been able to generate a moderate to relatively high level of operating income relative to its assets.
In recent periods, the operating ROA has shown a general decreasing trend, with the ratio decreasing from 7.78% in July 2021 to 0.93% in December 2023. This decline may indicate that the company's operational efficiency and profitability have decreased over this period.
It is important for investors and analysts to closely monitor the operating ROA of Advance Auto Parts Inc to assess the company's ability to generate profits from its core operational activities and effectively utilize its assets. Further analysis of the company's financial performance, operational strategies, and market conditions may provide insights into the factors influencing the fluctuations in its operating ROA.
Peer comparison
Dec 31, 2023