Advance Auto Parts Inc (AAP)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | -719,496 | 45,044 | -3,266 | -129,679 | -75,578 | 100,502 | 240,076 | 364,002 | 377,421 | 416,166 | 488,329 | 619,486 | 589,889 | 619,091 | 571,639 | 603,296 | 727,938 | 782,573 | 920,372 | 943,725 |
| Revenue (ttm) | US$ in thousands | 10,233,310 | 10,702,160 | 11,273,250 | 11,309,280 | 10,589,100 | 10,810,300 | 11,508,810 | 12,207,320 | 11,994,990 | 11,950,260 | 11,174,010 | 10,421,850 | 11,314,910 | 12,047,780 | 11,803,420 | 11,759,220 | 11,013,650 | 10,288,860 | 10,541,300 | 11,250,440 |
| Pretax margin | -7.03% | 0.42% | -0.03% | -1.15% | -0.71% | 0.93% | 2.09% | 2.98% | 3.15% | 3.48% | 4.37% | 5.94% | 5.21% | 5.14% | 4.84% | 5.13% | 6.61% | 7.61% | 8.73% | 8.39% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-719,496K ÷ $10,233,310K
= -7.03%
The pretax margin of Advance Auto Parts Inc has experienced a declining trend over the analyzed period, starting at 8.39% as of September 30, 2021, and gradually decreasing to -7.03% as of December 31, 2024. The company's profitability before taxes deteriorated steadily, with fluctuations along the way, hitting a low point in the last quarter of 2024.
This downward trend in pretax margin raises concerns about the company's operational efficiency and cost management. It suggests that the company may be facing challenges in generating profits before considering tax implications, which could be attributed to various factors such as declining sales, cost pressures, or inefficiencies in the business operations.
Investors and stakeholders should closely monitor Advance Auto Parts Inc's financial performance and the factors affecting its pretax margin to assess the sustainability of its profitability and the effectiveness of its strategic decisions in the future.
Peer comparison
Dec 31, 2024