Advance Auto Parts Inc (AAP)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -355,137 | 24,513 | -12,161 | -105,785 | -67,220 | 46,484 | 156,844 | 253,800 | 281,919 | 319,223 | 386,781 | 482,860 | 430,604 | 454,514 | 420,302 | 445,713 | 561,086 | 599,991 | 697,018 | 713,135 |
| Total stockholders’ equity | US$ in thousands | 2,169,940 | 2,597,680 | 2,606,750 | 2,564,650 | 2,519,730 | 2,566,340 | 2,646,870 | 2,642,650 | 2,723,190 | 2,562,720 | 2,636,160 | 2,599,190 | 2,719,550 | 2,716,080 | 2,794,810 | 2,909,680 | 2,909,680 | 3,128,290 | 3,196,540 | 3,196,540 |
| 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% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-355,137K ÷ $2,169,940K
= -16.37%
The return on equity (ROE) of Advance Auto Parts Inc has shown fluctuations over the past few years. Starting from around 22.31% in September 2021, the ROE decreased gradually to 0.94% by September 30, 2024. Notably, there was a significant decline in ROE in the latter half of 2023 and into 2024, with negative ROE values recorded in December 2023 (-2.67%), March 2024 (-4.12%), and June 2024 (-0.47%).
These declining ROE figures suggest that the company's profitability relative to its shareholders' equity weakened during this period. The negative and diminishing ROE values indicate that the company may be struggling to generate profits from the shareholder investments. This could be attributed to various factors such as declining profitability, increasing expenses, or inefficient utilization of equity.
Investors and stakeholders may view these declining ROE trends as concerning, as it indicates a decrease in the company's ability to generate returns on the equity invested. It would be essential for the company to address the underlying issues impacting its profitability and efficiency to improve its ROE and enhance shareholder value in the future.
Peer comparison
Dec 31, 2024