Advance Auto Parts Inc (AAP)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 29,735 | 464,402 | 616,108 | 493,021 | 486,896 |
| Total assets | US$ in thousands | 12,276,300 | 11,986,400 | 12,194,200 | 11,839,600 | 11,248,500 |
| ROA | 0.24% | 3.87% | 5.05% | 4.16% | 4.33% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $29,735K ÷ $12,276,300K
= 0.24%
The return on assets (ROA) of Advance Auto Parts Inc has shown a declining trend over the past five years. In 2023, the ROA was at 0.24%, significantly lower compared to the previous year's 3.87%. This decline suggests that the company's ability to generate profit from its assets diminished in the most recent year. Further, comparing the ROA to two years ago in 2021 when it stood at 5.05%, there is a notable decrease in profitability efficiency.
It is important to investigate the reasons behind this decline in ROA, as a lower ROA may indicate inefficiencies in asset utilization or management. Further analysis of the company's financial statements and operations may be necessary to identify the factors contributing to the decrease in ROA and to implement strategies to improve asset efficiency and profitability in the future.
Peer comparison
Dec 31, 2023