Advance Auto Parts Inc (AAP)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -768,098 | 31,847 | 648,687 | 805,925 | 651,015 |
| Revenue | US$ in thousands | 9,094,330 | 11,287,600 | 11,154,700 | 10,998,000 | 10,106,300 |
| Pretax margin | -8.45% | 0.28% | 5.82% | 7.33% | 6.44% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $-768,098K ÷ $9,094,330K
= -8.45%
The pretax margin of Advance Auto Parts Inc has shown some fluctuations over the years. In 2020, the pretax margin was 6.44%, which increased to 7.33% in 2021, indicating an improvement in profitability. However, in 2022, the pretax margin decreased to 5.82%, showing a slight decline. In 2023, there was a significant decrease in profitability, with the pretax margin plummeting to 0.28%. The most recent data for 2024 reveals a negative pretax margin of -8.45%, indicating that the company is experiencing a loss before taxes.
Overall, the trend in Advance Auto Parts Inc's pretax margin has been somewhat volatile, with a mix of improvements and declines. The sharp decrease in profitability in 2023 and the negative pretax margin in 2024 raise concerns about the company's financial performance and its ability to generate profits before taxes. It is essential for the company to assess its cost structure and revenue generation strategies to address these declines and enhance profitability in the future.
Peer comparison
Dec 31, 2024