Advance Auto Parts Inc (AAP)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -335,788 | 29,735 | 464,402 | 596,615 | 493,021 |
| Total assets | US$ in thousands | 10,798,100 | 12,276,300 | 11,986,400 | 12,194,200 | 11,839,600 |
| ROA | -3.11% | 0.24% | 3.87% | 4.89% | 4.16% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $-335,788K ÷ $10,798,100K
= -3.11%
Based on the provided data, Advance Auto Parts Inc's return on assets (ROA) has shown variability over the years. ROA increased from 4.16% on December 31, 2020, to 4.89% on December 31, 2021, indicating an improvement in the company's ability to generate profit from its assets during that period. However, the ROA declined to 3.87% by December 31, 2022, and further dropped significantly to 0.24% by December 31, 2023.
The ROA turned negative at -3.11% by December 31, 2024, implying that Advance Auto Parts Inc experienced challenges in generating earnings relative to its asset base, which could be a cause for concern for investors and stakeholders. The declining trend in ROA from 2022 to 2024 suggests a potential decrease in the company's profitability efficiency and asset utilization over these years. Monitoring and addressing the factors leading to this decline in ROA is essential for the company to enhance its financial performance and sustainable growth.
Peer comparison
Dec 31, 2024