Advance Auto Parts Inc (AAP)
Pretax margin
| Dec 31, 2023 | Oct 7, 2023 | Jul 15, 2023 | Apr 22, 2023 | Dec 31, 2022 | Oct 8, 2022 | Apr 23, 2022 | Dec 31, 2021 | Oct 9, 2021 | Jul 17, 2021 | Apr 24, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jul 11, 2020 | Apr 18, 2020 | Dec 31, 2019 | Oct 5, 2019 | Jul 13, 2019 | Apr 20, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 63,995 | 263,403 | 481,650 | 465,472 | 490,182 | 574,093 | 657,930 | 805,925 | 846,703 | 821,820 | 836,595 | 675,628 | 654,924 | 618,126 | 531,796 | 637,747 | 587,564 | 573,744 | 565,005 | 555,264 |
| Revenue (ttm) | US$ in thousands | 11,284,210 | 11,292,080 | 11,214,340 | 11,895,070 | 10,872,760 | 11,024,650 | 11,032,730 | 10,996,300 | 10,959,250 | 10,879,950 | 10,731,910 | 10,099,420 | 9,853,800 | 9,623,980 | 9,454,850 | 9,709,010 | 9,701,470 | 9,664,340 | 9,658,740 | 9,580,550 |
| Pretax margin | 0.57% | 2.33% | 4.29% | 3.91% | 4.51% | 5.21% | 5.96% | 7.33% | 7.73% | 7.55% | 7.80% | 6.69% | 6.65% | 6.42% | 5.62% | 6.57% | 6.06% | 5.94% | 5.85% | 5.80% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $63,995K ÷ $11,284,210K
= 0.57%
The pretax margin of Advance Auto Parts Inc has fluctuated over the past few years, with a general downward trend observed. The pretax margin measures the company's profitability before taxes as a percentage of its total revenue.
Starting from December 31, 2018, the pretax margin saw a gradual decline from 6.57% and dropped to 0.57% by December 31, 2023, marking a significant decrease. Although the pretax margin experienced fluctuations during this period, the overall trend indicates a decrease in profitability before taxes.
The company experienced higher pretax margins in the earlier years, with levels above 7% in 2021 and 2022. However, as of December 31, 2023, the pretax margin stands at a considerably lower percentage of 0.57%. This downward trend in pretax margin may suggest potential challenges in maintaining profitability or controlling costs within the company.
Further analysis of the factors influencing this trend, such as changes in operating expenses, revenue growth, or pricing strategies, would be necessary to gain a deeper understanding of the financial performance of Advance Auto Parts Inc.
Peer comparison
Dec 31, 2023