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AAP (Advance Auto Parts) Debt-to-EBITDA : -61.18 (As of Mar. 2025)


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What is Advance Auto Parts Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

Advance Auto Parts's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $299 Mil. Advance Auto Parts's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $3,372 Mil. Advance Auto Parts's annualized EBITDA for the quarter that ended in Mar. 2025 was $-60 Mil. Advance Auto Parts's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2025 was -61.18.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Advance Auto Parts's Debt-to-EBITDA or its related term are showing as below:

AAP' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -9.33   Med: 2.14   Max: 12.33
Current: -6.94

During the past 13 years, the highest Debt-to-EBITDA Ratio of Advance Auto Parts was 12.33. The lowest was -9.33. And the median was 2.14.

AAP's Debt-to-EBITDA is ranked worse than
100% of 1073 companies
in the Vehicles & Parts industry
Industry Median: 2.59 vs AAP: -6.94

Advance Auto Parts Debt-to-EBITDA Historical Data

The historical data trend for Advance Auto Parts's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Advance Auto Parts Debt-to-EBITDA Chart

Advance Auto Parts Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.22 3.12 4.81 12.33 -9.33

Advance Auto Parts Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Debt-to-EBITDA Get a 7-Day Free Trial 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 - 6.00 18.11 -1.26 -61.18

Competitive Comparison of Advance Auto Parts's Debt-to-EBITDA

For the Auto Parts subindustry, Advance Auto Parts's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* 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. Note that "N/A" values will not show up in the chart.


Advance Auto Parts's Debt-to-EBITDA Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Advance Auto Parts's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Advance Auto Parts's Debt-to-EBITDA falls into.


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Advance Auto Parts Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Advance Auto Parts's Debt-to-EBITDA for the fiscal year that ended in Dec. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0 + 3686.326) / -395.085
=-9.33

Advance Auto Parts's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2025 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(299 + 3372) / -60
=-61.18

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Mar. 2025) EBITDA data.


Advance Auto Parts  (NYSE:AAP) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Advance Auto Parts Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Advance Auto Parts's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.


Advance Auto Parts Business Description

Address
4200 Six Forks Road, Raleigh, NC, USA, 27609
Advance Auto Parts is a leading auto-parts retailer in North America with more than 4,000 store and branch locations. About half of the firm's sales are geared toward the professional channel, with the remaining sales in the do-it-yourself market. Through its vast store footprint and distribution network, Advance manages thousands of stock-keeping units for various vehicle makes and models. The retailer primarily competes on the basis of inventory availability and service speed, making the operating efficiency of its hub-and-spoke distribution model critical to meeting customer needs.
Executives
Shane M Okelly director, officer: Director, President and CEO 4200 SIX FORKS ROAD, RALEIGH NC 27609
Lee Eugene I Jr director 1000 DARDEN CENTER DRIVE, ORLANDO FL 32837
Tammy M Finley officer: SVP, Human Resources ADVANCE AUTO PARTS, INC., 5008 AIRPORT RD, ROANOKE VA 24012
Kristen L Soler officer: EVP, Chief HR Officer 12200 FOX VALLEY STREET, RALEIGH NC 27614
Jones Jeffrey J Ii director ONE H&R BLOCK WAY, KANSAS CITY MO 64105
Word Herman L Jr officer: EVP, U.S. Stores & CQ Ind. 1033 LINENHALL WAY, WAKE FOREST NC 27587
Carla Jean Bailo director 1775 SHERMAN STREET, SUITE 1200, DENVER CO 80203
Anthony A Iskander officer: Interim CFO, SVP, Fin & Treas 4200 SIX FORKS ROAD, RALEIGH NC 27609
Douglas A Pertz director 1801 BAYBERRY COURT, RICHMOND VA 23226
Joan M Hilson director 150 THORN HILL DRIVE, WARRENDALE PA 15086-7528
John Francis Ferraro director 9 WALNUT AVE, CAMBRIDGE MA 02140
Szilagyi J Stephen officer: EVP Chief Supply Chain Officer 15027 JUNE WASHAM ROAD, RALEIGH NC 27609
Pellicciotti William J Jr officer: SVP, Controller and CAO 4200 SIX FORKS ROAD, RALEIGH NC 27609
Robert B Cushing officer: EVP, Commercial 1432 FREEMAN LANE, PLEASANTON VA 94566
Sherice Torres director PO BOX 20833, SAN JOSE CA 95160