GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Advance Auto Parts Inc (BUE:AAP) » Definitions » 5-Year RORE %

Advance Auto Parts (BUE:AAP) 5-Year RORE % : 12.77% (As of Sep. 2024)


View and export this data going back to 2024. Start your Free Trial

What is Advance Auto Parts 5-Year RORE %?

Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments. Advance Auto Parts's 5-Year RORE % for the quarter that ended in Sep. 2024 was 12.77%.

The industry rank for Advance Auto Parts's 5-Year RORE % or its related term are showing as below:

BUE:AAP's 5-Year RORE % is ranked worse than
83.35% of 919 companies
in the Retail - Cyclical industry
Industry Median: 7.66 vs BUE:AAP: 12.77

Advance Auto Parts 5-Year RORE % Historical Data

The historical data trend for Advance Auto Parts's 5-Year RORE % 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 5-Year RORE % Chart

Advance Auto Parts Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
5-Year RORE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 36.01 35.12 39.02 30.94 -15.94

Advance Auto Parts Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
5-Year RORE % 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 4.31 -15.94 0.13 6.51 12.77

Competitive Comparison of Advance Auto Parts's 5-Year RORE %

For the Specialty Retail subindustry, Advance Auto Parts's 5-Year RORE %, along with its competitors' market caps and 5-Year RORE % 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 5-Year RORE % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Advance Auto Parts's 5-Year RORE % distribution charts can be found below:

* The bar in red indicates where Advance Auto Parts's 5-Year RORE % falls into.



Advance Auto Parts 5-Year RORE % Calculation

Advance Auto Parts's 5-Year RORE % for the quarter that ended in Sep. 2024 is calculated as:

5-Year RORE %=( Most Recent EPS (Diluted)- First Period EPS (Diluted) )/( Cumulative EPS (Diluted) for 5-year -Cumulative Dividends per Share for 5-year )
=( 928.06-467.303 )/( 3640.953-32.964 )
=460.757/3607.989
=12.77 %

* 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 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Sep. 2024 and 5-year before.


Advance Auto Parts  (BUE:AAP) 5-Year RORE % Explanation

Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.

There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 5-year period is chosen.

Be Aware

Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.


Advance Auto Parts 5-Year RORE % Related Terms

Thank you for viewing the detailed overview of Advance Auto Parts's 5-Year RORE % 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 55% of the firm's sales are geared toward the professional channel, with the remaining 45% going to the do-it-yourself market. Through its vast store footprint and distribution network, Advance manages thousands of stock-keeping units conducive to 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.