Advance Auto Parts Inc (AAP)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 29,736 | 179,941 | 357,859 | 333,722 | 367,068 | 421,803 | 484,618 | 616,108 | 646,435 | 624,098 | 635,362 | 517,634 | 501,545 | 477,738 | 412,598 | 486,896 | 444,430 | 436,604 | 429,620 | 423,847 |
| Total stockholders’ equity | US$ in thousands | 2,519,730 | 2,566,340 | 2,642,650 | 2,562,720 | 2,599,190 | 2,719,550 | 2,909,680 | 3,129,450 | 3,196,540 | 3,301,560 | 3,501,570 | 3,559,510 | 3,762,660 | 3,726,520 | 3,537,030 | 3,549,080 | 3,454,940 | 3,671,300 | 3,547,220 | 3,550,810 |
| 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% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $29,736K ÷ $2,519,730K
= 1.18%
Advance Auto Parts Inc's return on equity (ROE) has experienced fluctuations over the past few years. The ROE was relatively low at 1.18% as of December 31, 2023, indicating a decrease in profitability compared to previous periods. This is a significant decline from the highest ROE observed at 20.22% on October 9, 2021.
Overall, Advance Auto Parts Inc's ROE has shown a downward trend since 2021, with occasional fluctuations. The company's ROE was relatively stable in the range of 11% to 14% between 2019 and 2020. However, there has been a noticeable decline in ROE since 2021, with ROE dropping to around 7% to 13% in recent quarters.
The decreasing trend in ROE may raise concerns about the company's ability to generate returns for its equity holders. It would be essential for investors and stakeholders to monitor the company's financial performance closely to understand the factors contributing to the fluctuations in ROE and assess the company's long-term profitability and sustainability.
Peer comparison
Dec 31, 2023