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
18.05%
MarineMax Inc
HZO
2.21%
O’Reilly Automotive Inc
ORLY
19.25%