Advance Auto Parts Inc (AAP)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 146,526 | 351,263 | 565,980 | 636,108 | 642,923 | 715,951 | 789,858 | 838,717 | 878,081 | 905,694 | 923,611 | 749,907 | 724,220 | 639,737 | 547,664 | 677,179 | 635,293 | 617,206 | 613,975 | 604,276 |
| Long-term debt | US$ in thousands | 1,786,360 | 1,518,770 | 1,706,400 | 1,784,180 | 1,188,280 | 998,000 | — | 1,034,320 | 1,103,630 | 1,121,000 | 1,033,370 | 1,032,980 | 1,128,000 | 1,352,000 | 1,283,000 | 747,320 | 747,136 | 746,951 | 746,767 | 1,045,720 |
| 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 |
| 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% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $146,526K ÷ ($1,786,360K + $2,519,730K)
= 3.40%
The return on total capital for Advance Auto Parts Inc has shown some fluctuations over the past few years. The trend indicates a general decrease in the return on total capital from 2018 to 2020, followed by a slight increase in 2021 and 2022, before experiencing a decrease again in 2023.
The return on total capital was notably high in 2021 and 2022, reaching levels above 20%. However, this metric declined to 3.40% in December 2023, marking a significant drop compared to the previous period. This decrease suggests that the company may be facing challenges in generating returns relative to the capital invested.
Overall, the return on total capital of Advance Auto Parts Inc has shown variability, indicating fluctuations in the efficiency of capital utilization and profitability over the analyzed period. Further analysis and consideration of the company's operational and financial performance would be warranted to fully assess the factors influencing this trend.
Peer comparison
Dec 31, 2023