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Advance Auto Parts (NYSE:AAP) Profitability Rank

: 7 (As of Dec. 2023)
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Advance Auto Parts has the Profitability Rank of 7.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

Advance Auto Parts's Operating Margin % for the quarter that ended in Dec. 2023 was -1.97%. As of today, Advance Auto Parts's Piotroski F-Score is 6.


Competitive Comparison

For the Specialty Retail subindustry, Advance Auto Parts's Profitability Rank, along with its competitors' market caps and Profitability Rank 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 Profitability Rank Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Advance Auto Parts's Profitability Rank distribution charts can be found below:

* The bar in red indicates where Advance Auto Parts's Profitability Rank falls into.



Advance Auto Parts Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Advance Auto Parts has the Profitability Rank of 7.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Advance Auto Parts's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=-48.566 / 2464.869
=-1.97 %

* 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.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Advance Auto Parts has an F-score of 6 indicating the company's financial situation is typical for a stable company.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Warning Sign:

Advance Auto Parts Inc operating margin has been in a 5-year decline. The average rate of decline per year is -23.5%.

4. Consistency of the profitability

5. Predictability Rank


Advance Auto Parts Profitability Rank Related Terms

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


Advance Auto Parts (NYSE:AAP) Business Description

Traded in Other Exchanges
Address
4200 Six Forks Road, Raleigh, NC, USA, 27609
Advance Auto Parts is one of the industry's largest retailers of aftermarket automotive parts, tools, and accessories to do-it-yourself customers and third-party vehicle repair facilities in North America. Advance operated 5,086 stores as of the end of 2022, in addition to servicing 1,311 independently owned Carquest stores. The company's Worldpac chain is a premier distributor of imported original-equipment parts. Advance derived 59% of its 2022 sales from commercial clients, with the remainder from DIY shoppers.
Executives
Kristen L Soler officer: EVP, Chief HR Officer 12200 FOX VALLEY STREET, RALEIGH NC 27614
Lee Eugene I Jr director 1000 DARDEN CENTER DRIVE, ORLANDO FL 32837
Shane M Okelly director, officer: Director, President and CEO 4200 SIX FORKS ROAD, RALEIGH NC 27609
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
Carla Jean Bailo director 1775 SHERMAN STREET, SUITE 1200, DENVER CO 80203
Jones Jeffrey J Ii director ONE H&R BLOCK WAY, KANSAS CITY MO 64105
Szilagyi J Stephen officer: EVP Chief Supply Chain Officer 15027 JUNE WASHAM ROAD, RALEIGH NC 27609
Word Herman L Jr officer: EVP, U.S. Stores & CQ Ind. 1033 LINENHALL WAY, WAKE FOREST NC 27587
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
Natalie Schechtman officer: SVP Human Resources 45 ROUND HOUSE ROAD, BEDFORD NY 10506