Advance Auto Parts Inc (AAP)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Oct 7, 2023 | Sep 30, 2023 | Jul 15, 2023 | Jun 30, 2023 | Apr 22, 2023 | Mar 31, 2023 | Dec 31, 2022 | Oct 8, 2022 | Sep 30, 2022 | Jun 30, 2022 | Apr 23, 2022 | Mar 31, 2022 | Dec 31, 2021 | Oct 9, 2021 | Sep 30, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -661,827 | 109,609 | 48,253 | -67,194 | -27,255 | 155,679 | 314,570 | 448,265 | 454,307 | 490,960 | 570,220 | 694,960 | 766,228 | 808,927 | 744,191 | 758,650 | 784,578 | 815,786 | 948,252 | 971,183 |
| Total assets | US$ in thousands | 10,798,100 | 12,468,200 | 12,289,800 | 12,201,100 | 13,000,800 | 12,249,200 | 12,248,900 | 12,299,200 | 12,304,400 | 12,177,300 | 12,182,200 | 11,986,400 | 12,129,300 | 12,132,100 | 12,138,000 | 12,002,500 | 12,002,500 | 12,194,200 | 11,864,200 | 11,864,200 |
| Operating ROA | -6.13% | 0.88% | 0.39% | -0.55% | -0.21% | 1.27% | 2.57% | 3.64% | 3.69% | 4.03% | 4.68% | 5.80% | 6.32% | 6.67% | 6.13% | 6.32% | 6.54% | 6.69% | 7.99% | 8.19% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-661,827K ÷ $10,798,100K
= -6.13%
Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's operating efficiency in generating profits relative to its total assets. A higher operating ROA indicates that the company is more effective in utilizing its assets to generate profits.
Analyzing the data provided for Advance Auto Parts Inc, we observe fluctuations in the operating ROA over the given periods. The trend shows a gradual decline in operating ROA from September 2021 (8.19%) to December 2024 (-6.13%). This downward trend suggests a decreasing ability of Advance Auto Parts Inc to generate operating profits in relation to its total assets over the specified timeframe.
The operating ROA decreased significantly from positive figures to negative values in the latter periods, indicating potential challenges in operational efficiency and asset utilization. The negative operating ROA values from December 2023 suggest that the company may be experiencing operational inefficiencies or facing profitability issues.
It is essential for stakeholders to closely monitor the company's operating ROA trends and evaluate the underlying reasons for the declining performance. Addressing operational inefficiencies and implementing strategies to improve asset utilization could help Advance Auto Parts Inc enhance its profitability and overall financial health.
Peer comparison
Dec 31, 2024