Advance Auto Parts Inc (AAP)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 37.12% | 41.13% | 39.60% | 38.35% | 38.23% | 39.27% | 41.16% | 42.77% | 43.11% | 43.53% | 44.03% | 44.44% | 44.61% | 44.54% | 44.55% | 44.72% | 44.81% | 44.96% | 45.00% | 44.85% |
| Operating profit margin | -6.47% | 1.02% | 0.43% | -0.59% | -0.26% | 1.44% | 2.73% | 3.67% | 3.79% | 4.11% | 5.10% | 6.67% | 6.77% | 6.71% | 6.30% | 6.45% | 7.12% | 7.93% | 9.00% | 8.63% |
| 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% |
| Net profit margin | -3.47% | 0.23% | -0.11% | -0.94% | -0.63% | 0.43% | 1.36% | 2.08% | 2.35% | 2.67% | 3.46% | 4.63% | 3.81% | 3.77% | 3.56% | 3.79% | 5.09% | 5.83% | 6.61% | 6.34% |
The profitability ratios of Advance Auto Parts Inc show varying trends over the period.
1. Gross Profit Margin: The gross profit margin has experienced fluctuations, starting at 44.85% in September 2021 and peaking at 45.00% in October 2021. However, the margin declined gradually to 37.12% by December 2024.
2. Operating Profit Margin: The operating profit margin also exhibited volatility, starting at 8.63% in September 2021, reaching its highest point at 9.00% in October 2021, and then declining significantly to -6.47% by December 2024.
3. Pretax Margin: The pretax margin followed a similar pattern of fluctuation, with a gradual decline from 8.39% in September 2021 to -7.03% by December 2024.
4. Net Profit Margin: The net profit margin mirrored the trends of the other profitability ratios, declining from 6.34% in September 2021 to -3.47% by December 2024.
Overall, the declining trend in profitability ratios indicates challenges in maintaining profitability for Advance Auto Parts Inc during the period under review.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -6.13% | 0.88% | 0.39% | -0.55% | -0.21% | 1.27% | 2.57% | 3.64% | 3.69% | 4.03% | 4.68% | 5.80% | 6.32% | 6.67% | 6.13% | 6.32% | 6.54% | 6.69% | 7.99% | 8.19% |
| Return on assets (ROA) | -3.29% | 0.20% | -0.10% | -0.87% | -0.52% | 0.38% | 1.28% | 2.06% | 2.29% | 2.62% | 3.17% | 4.03% | 3.55% | 3.75% | 3.46% | 3.71% | 4.67% | 4.92% | 5.87% | 6.01% |
| Return on total capital | -29.41% | 4.61% | 2.81% | -2.04% | -0.16% | 4.42% | 12.46% | 10.67% | 17.42% | 11.72% | 21.36% | 25.30% | 19.30% | 27.60% | 25.04% | 25.62% | 26.57% | 26.05% | 22.12% | 30.47% |
| Return on equity (ROE) | -16.37% | 0.94% | -0.47% | -4.12% | -2.67% | 1.81% | 5.93% | 9.60% | 10.35% | 12.46% | 14.67% | 18.58% | 15.83% | 16.73% | 15.04% | 15.32% | 19.28% | 19.18% | 21.81% | 22.31% |
Advance Auto Parts Inc's profitability ratios have shown a declining trend over the reporting periods. The Operating return on assets (Operating ROA) decreased from 8.19% in September 2021 to -6.13% in December 2024. Similarly, the Return on assets (ROA) declined from 6.01% in September 2021 to -3.29% in December 2024.
The Return on total capital also exhibited a decreasing pattern, dropping from 30.47% in September 2021 to -29.41% in December 2024. This indicates a significant decrease in the company's ability to generate profits relative to its total capital employed.
Moreover, the Return on equity (ROE) decreased from 22.31% in September 2021 to -16.37% in December 2024, reflecting a diminishing return for equity holders over the periods analyzed.
The downward trend in these profitability ratios suggests that Advance Auto Parts Inc's overall profitability and efficiency in generating returns from its assets, total capital, and equity have deteriorated over the period under review. Investors and stakeholders may need to closely monitor the company's financial performance and assess the factors contributing to these declining profitability metrics.