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Advance Auto Parts Return-on-Tangible-Equity

: 28.58% (As of Sep. 2020)
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Return-on-Tangible-Equity is calculated as Net Income attributable to Common Stockholders divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Advance Auto Parts's annualized net income attributable to common stockholders for the quarter that ended in Sep. 2020 was $590 Mil. Advance Auto Parts's average shareholder tangible equity for the quarter that ended in Sep. 2020 was $2,064 Mil. Therefore, Advance Auto Parts's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2020 was 28.58%.

NYSE:AAP' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 22.11   Med: 37.44   Max: 90.74
Current: 24.4

22.11
90.74

During the past 13 years, Advance Auto Parts's highest Return-on-Tangible-Equity was 90.74%. The lowest was 22.11%. And the median was 37.44%.

NYSE:AAP's Return-on-Tangible-Equity is ranked higher than
83% of the 963 Companies
in the Retail - Cyclical industry.

( Industry Median: 4.04 vs. NYSE:AAP: 24.40 )

Advance Auto Parts Return-on-Tangible-Equity Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Advance Auto Parts Annual Data
Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Return-on-Tangible-Equity Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 90.74 44.44 30.60 22.11 25.25

Advance Auto Parts Quarterly Data
Dec14 Apr15 Sep15 Dec15 Apr16 Sep16 Dec16 Apr17 Sep17 Dec17 Apr18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20
Return-on-Tangible-Equity Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 24.10 20.21 9.43 39.03 28.58

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Advance Auto Parts Return-on-Tangible-Equity Distribution

* The bar in red indicates where Advance Auto Parts's Return-on-Tangible-Equity falls into.



Advance Auto Parts Return-on-Tangible-Equity Calculation

Advance Auto Parts's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2019 is calculated as

Return-on-Tangible-Equity=Net Income attributable to Common Stockholders/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2019 )  (A: Dec. 2018 )(A: Dec. 2019 )
=Net Income attributable to Common Stockholders/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2019 )  (A: Dec. 2018 )(A: Dec. 2019 )
=486.896/( (2009.983+1847.085 )/ 2 )
=486.896/1928.534
=25.25 %

Advance Auto Parts's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2020 is calculated as

Return-on-Tangible-Equity=Net Income attributable to Common Stockholders/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Sep. 2020 )  (Q: Jun. 2020 )(Q: Sep. 2020 )
=Net Income attributable to Common Stockholders/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Sep. 2020 )  (Q: Jun. 2020 )(Q: Sep. 2020 )
=589.904/( (2043.641+2084.951)/ 2 )
=589.904/2064.296
=28.58 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

In the calculation of annual Return-on-Tangible-Equity, the net income attributable to common stockholders of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the net income attributable to common stockholders data used here is four times the quarterly (Sep. 2020) net income attributable to common stockholders data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Advance Auto Parts  (NYSE:AAP) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.


Be Aware

Net income attributable to common stockholders is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.


Advance Auto Parts Return-on-Tangible-Equity Related Terms


Advance Auto Parts Return-on-Tangible-Equity Headlines

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