Advance Auto Parts Inc (AAP)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 40.09% | 41.40% | 43.55% | 44.13% | 44.70% | 44.81% | 44.87% | 44.82% | 45.08% | 44.91% | 44.67% | 44.37% | 43.91% | 43.75% | 43.61% | 43.82% | 43.86% | 43.97% | 44.02% | 44.04% |
| Operating profit margin | 1.01% | 2.83% | 4.91% | 5.28% | 5.91% | 6.49% | 7.16% | 7.63% | 8.01% | 8.32% | 8.61% | 7.43% | 7.35% | 6.65% | 5.79% | 6.97% | 6.55% | 6.39% | 6.36% | 6.31% |
| 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% |
| Net profit margin | 0.26% | 1.59% | 3.19% | 2.81% | 3.38% | 3.83% | 4.39% | 5.60% | 5.90% | 5.74% | 5.92% | 5.13% | 5.09% | 4.96% | 4.36% | 5.01% | 4.58% | 4.52% | 4.45% | 4.42% |
Advance Auto Parts Inc's profitability ratios have shown varying trends over the past few years. The gross profit margin has fluctuated slightly but remained relatively stable around 44%, indicating the company's ability to efficiently manage its production costs.
The operating profit margin has shown a general decreasing trend since 2021, indicating a reduction in profitability from operations. This trend may be a result of increasing operating expenses or declining sales efficiency.
The pretax margin has also fluctuated over the years, with a general decreasing trend since 2021. This suggests that the company's profitability before accounting for taxes has been on a slight decline, possibly due to a combination of factors such as higher expenses or lower revenue.
The net profit margin, which reflects the company's profitability after all expenses including taxes, has also shown a decreasing trend since 2021. This indicates that Advance Auto Parts Inc's bottom line profitability has been slightly decreasing over the years.
Overall, based on the profitability ratios, it appears that Advance Auto Parts Inc may be facing challenges in maintaining and increasing its profitability, potentially requiring a closer examination of its cost structure and revenue generating strategies.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 0.93% | 2.61% | 4.48% | 5.16% | 5.36% | 5.90% | 6.58% | 6.88% | 7.40% | 7.65% | 7.78% | 6.33% | 6.05% | 5.36% | 4.54% | 6.02% | 5.72% | 5.48% | 5.54% | 6.68% |
| Return on assets (ROA) | 0.24% | 1.47% | 2.91% | 2.74% | 3.06% | 3.48% | 4.04% | 5.05% | 5.45% | 5.27% | 5.35% | 4.37% | 4.19% | 4.00% | 3.42% | 4.33% | 4.00% | 3.87% | 3.88% | 4.69% |
| Return on total capital | 3.40% | 8.60% | 13.01% | 14.63% | 16.97% | 19.26% | 27.15% | 20.14% | 20.42% | 20.48% | 20.37% | 16.33% | 14.81% | 12.60% | 11.36% | 15.76% | 15.12% | 13.97% | 14.30% | 13.15% |
| Return on equity (ROE) | 1.18% | 7.01% | 13.54% | 13.02% | 14.12% | 15.51% | 16.66% | 19.69% | 20.22% | 18.90% | 18.15% | 14.54% | 13.33% | 12.82% | 11.67% | 13.72% | 12.86% | 11.89% | 12.11% | 11.94% |
Over the past few years, Advance Auto Parts Inc's profitability ratios have displayed some fluctuations. The trend indicates that the company's efficiency in generating profits from its assets has varied.
The Operating Return on Assets (Operating ROA) has shown a decrease in recent periods, ranging from 0.93% to 7.78%. This indicates a decline in the company's ability to generate operating profits from its total assets.
The Return on Assets (ROA) has also exhibited some variations, fluctuating between 0.24% and 5.45%. Despite the fluctuations, the ROA has generally remained at a moderate level, reflecting the company's ability to generate profits from its assets.
Advance Auto Parts Inc's Return on Total Capital has seen significant fluctuations, ranging from 3.40% to 27.15%. This metric shows the company's effectiveness in generating profits from both equity and debt capital invested in the business.
The Return on Equity (ROE) has also shown some variability, ranging from 1.18% to 20.22%. This ratio reflects the company's ability to generate profits for its shareholders from the equity invested in the business.
Overall, while there have been fluctuations in Advance Auto Parts Inc's profitability ratios over the years, the company has generally maintained a reasonable level of profitability, though improvements may be needed in certain areas to enhance overall financial performance.