Advance Auto Parts Inc (AAP)

Pretax margin

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Earnings before tax but after interest (EBT) US$ in thousands 31,847 648,687 805,925 651,015 637,746
Revenue US$ in thousands 11,284,200 11,142,900 10,996,300 10,051,400 9,707,300
Pretax margin 0.28% 5.82% 7.33% 6.48% 6.57%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $31,847K ÷ $11,284,200K
= 0.28%

The pretax margin of Advance Auto Parts Inc has fluctuated over the past five years, ranging from 0.28% to 7.33%. In 2023, the pretax margin decreased significantly to 0.28% from 5.82% in the previous year, indicating a decline in profitability before accounting for taxes. The drop in pretax margin may raise concerns about the company's ability to effectively control costs and manage its operations efficiently. Further analysis would be necessary to investigate the factors contributing to this decrease and assess the company's overall financial performance.


Peer comparison

Dec 31, 2023

Company name
Symbol
Pretax margin
Advance Auto Parts Inc
AAP
0.28%
AutoZone Inc
AZO
18.15%
MarineMax Inc
HZO
6.15%
O’Reilly Automotive Inc
ORLY
19.25%