Advance Auto Financials

AAP Stock  USD 85.32  1.07  1.27%   
Based on the analysis of Advance Auto's profitability, liquidity, and operating efficiency, Advance Auto Parts may be sliding down financialy. It has an above-average risk of going through some form of financial straits next quarter. At this time, Advance Auto's Property Plant And Equipment Net is relatively stable compared to the past year. As of 03/28/2024, Current Deferred Revenue is likely to grow to about 181.5 M, while Other Assets are likely to drop 0.95. Key indicators impacting Advance Auto's financial strength include:
Current ValueLast YearChange From Last Year 10 Year Trend
Net Profit Margin0.0320.0375
Fairly Down
Slightly volatile
Return On Assets0.04410.0348
Significantly Up
Slightly volatile
Return On Equity0.140.16
Fairly Down
Slightly volatile
Debt Equity Ratio1.021.57
Way Down
Slightly volatile
Operating Income108.7 M114.4 M
Notably Down
Pretty Stable
Current Ratio1.51.29
Fairly Up
Pretty Stable
The financial analysis of Advance Auto is a critical element in measuring its lifeblood. The essential information of the day-to-day investment outlook for Advance Auto includes many different criteria found on its balance sheet. For example, investors should never minimize Advance Auto's ability to pay suppliers or employees on time, making sure interest payments are not accumulating or correctly timing where and how to re-invest extra cash. Any individual investor needs to monitor Advance Auto's cash flow, debt, and profitability to effectively and accurately make more informed decisions on whether to invest in Advance Auto.

Cash And Equivalents

581.9 Million

With this module, you can analyze Advance financials for your investing period. You should be able to track the changes in Advance Auto individual financial statements over time to develop the understanding of its risk, liquidity, profitability, or other critical and vital indicators.
  
Understanding current and past Advance Auto Financials, including the trends in assets, liabilities, equity and income are directly related to making proper and timely investing decisions. All of Advance Auto's financial statements are interrelated, with each one affecting the others. For example, an increase in Advance Auto's assets may result in an increase in income on the income statement.
Evaluating Advance Auto's financials involves analyzing a range of financial metrics and ratios to gain insights into the company's financial health and performance. However, considering all of Advance Auto's profitability, liquidity ratios, and efficiency indicators at the same time could be an enormous task, and our Financial Distress score can provide you with a snapshot of the Advance Auto's relative financial performance

Chance Of Distress

Less than 5

 
100  
 
Zero
Very Low
Advance Auto Parts has less than 5 (%) percent chance of experiencing financial distress in the next two years of operations. The calculation of odds of distress for Advance Auto stock is tightly coupled with the Probability of Bankruptcy. It complements the equity performance score by supplying investors with insight into company financials without requiring them to know too much about all of the complex accounting and financial indicators surrounding the entity.
Please note, Advance Auto's odds of distress score SHOULD NOT be confused with the real chance of Advance Auto Parts filing for bankruptcy protection for chapters 7, 11, 12, or 13. We define Financial Distress as an operational condition where an entity such as Advance is having difficulty meeting its current financial obligations towards its creditors or delivering on the expectations of its investors. Macroaxis derives these conditions daily from public financial statements and analysis of stock prices reacting to market conditions or economic downturns, including short-term and long-term historical volatility. Other factors considered include Advance Auto's liquidity analysis, revenue patterns, R&D expenses, and commitments, as well as public headlines and social sentiment.
More Info
The data published in Advance Auto's official financial statements usually reflect Advance Auto's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Advance Auto Parts. For example, before you start analyzing numbers published by Advance accountants, it's critical to develop an understanding of what Advance Auto's liquidity, profitability, and earnings quality are in the context of the Specialty Retail space in which it operates.
Please note, the presentation of Advance Auto's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Advance Auto's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Advance Auto's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Advance Auto Parts. Please utilize our Beneish M Score to check the likelihood of Advance Auto's management manipulating its earnings.

Advance Auto Company Summary

Advance Auto competes with Macys, Wayfair, 1StdibsCom, Boqii Holding, and Foot Locker. Advance Auto Parts, Inc. provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. The company was founded in 1929 and is based in Raleigh, North Carolina. Advance Auto operates under Specialty Retail classification in the United States and is traded on New York Stock Exchange. It employs 41000 people.
Specialization
Consumer Discretionary, Consumer Discretionary Distribution & Retail
InstrumentUSA Stock View All
ExchangeNew York Stock Exchange
CIK Number0001158449
ISINUS00751Y1064
CUSIP00751Y106
RegionNorth America
LocationNorth Carolina; U.S.A
Business Address4200 Six Forks
SectorSpecialty Retail
IndustryConsumer Discretionary
BenchmarkNYSE Composite
Websiteshop.advanceautoparts.com
Phone540 362 4911
CurrencyUSD - US Dollar
You should never invest in Advance Auto without having analyzed its financial statements. Do not rely on someone else's analysis or guesses about the future performance of Advance Stock, because this is throwing your money away. Analyzing the key information contained in Advance Auto's financial statements can give you an edge over other investors and help to ensure that your investments perform well for you.

Advance Auto Key Financial Ratios

Generally speaking, Advance Auto's financial ratios allow both analysts and investors to convert raw data from Advance Auto's financial statements into concise, actionable information that can be used to evaluate the performance of Advance Auto over time and compare it to other companies across industries. There are many critical financial ratios that investors are exposed to on a daily basis, but they are usually grouped into few meaningful categories from each financial statement that Advance Auto Parts reports annually and quarterly.

Advance Auto Key Balance Sheet Accounts

201920202021202220232024 (projected)
Total Assets11.2B11.8B12.2B12.0B13.0B13.7B
Net Debt2.3B2.2B2.8B3.4B3.9B4.1B
Cash418.7M835.0M601.4M269.3M503.5M279.7M
Other Assets52.4M52.3M73.7M62.4M1.00.95
Inventory4.4B4.5B4.7B4.9B4.9B2.9B
Total Liab7.7B8.3B9.1B9.3B10.5B11.0B
Total Current Assets5.7B6.3B6.3B6.0B6.4B3.6B
Other Current Liab1.1B1.1B1.3B645.9M565.6M338.0M
Other Liab457.3M488.7M513.6M503.2M578.7M607.6M
Retained Earnings3.8B4.2B4.6B4.7B4.6B4.8B
Accounts Payable3.4B3.6B3.9B4.1B4.2B2.2B
Long Term Debt747.3M1.0B1.0B1.2B1.8B1.9B
Net Receivables689.5M750.0M782.8M698.6M800.1M840.1M
Other Current Assets155.2M146.8M232.2M163.7M215.7M226.5M
Short Term Debt478.0M462.6M465.1M185M445.1M467.3M
Treasury Stock(426.0M)(924.4M)(1.4B)(2.3B)(2.1B)(2.0B)
Good Will992.2M993.6M993.7M990.5M991.7M608.6M
Intangible Assets709.8M681.1M651.2M620.9M593.3M393.2M
Net Tangible Assets3.9B4.9B2.5B1.1B1.2B2.0B
Long Term Debt Total747.3M1.0B1.0B1.2B1.4B1.0B
Capital Surpluse735.2M783.7M845.4M897.6M1.0B723.8M

Advance Auto Key Income Statement Accounts

An income statement is very similar to a cash flow statement, but instead of showing net revenue minus expenses, it only includes earnings before interest and taxes (EBIT). This number does not have all of the same line items that are on a cash flow statement, but it leaves out non-cash expenses like depreciation and amortization. For example, if you bought $100 worth of goods from Walmart (WMT) using your debit card that has an interest rate of 20%, then paid off the balance at the end of the month with a credit card that charges 30% interest, you would have an income statement showing EBIT of $80 because your expenses are lower than the amount that went into your pocket. The other reason investors look at the income statement is to determine what Advance Auto's earnings per share (EPS) will be in order to see if they want to buy more shares or not. For example, if a company earned $20 million in the last quarter and has 100,000 shares outstanding, its EPS is 20 cents. If you find that this number beats analysts' forecasts or is higher than it was from the same period last year, then you might want to buy more of this stock even though its price per share may not have changed.
201920202021202220232024 (projected)
Interest Expense39.9M46.9M37.8M51.1M88.1M92.5M
Total Revenue9.7B10.1B11.0B11.2B11.3B7.2B
Gross Profit4.3B4.5B4.9B5.0B4.5B3.2B
Operating Income677.2M749.9M838.7M714.2M114.4M108.7M
Ebit677.2M749.9M838.7M714.2M114.4M108.7M
Ebitda916.0M996.0M1.1B991.0M420.8M733.5M
Cost Of Revenue5.5B5.6B6.1B6.2B6.8B3.9B
Income Before Tax637.7M651.0M805.9M648.7M31.8M30.3M
Net Income486.9M493.0M596.6M464.4M29.7M28.2M
Income Tax Expense150.9M158.0M189.8M146.8M2.1M2.0M
Tax Provision150.9M158.0M189.8M146.8M58.1M55.2M
Interest Income41.6M46.9M37.8M55.5M49.9M43.1M
Net Interest Income(39.9M)(46.9M)(37.8M)(51.1M)(85.9M)(90.2M)

Advance Auto Key Cash Accounts

Cash flow analysis captures how much money flows into and out of Advance Auto Parts. It measures of how well Advance is doing because it can show the actual money that comes into and out of the Company from sales instead of measuring expenses against revenue to determine earnings. You have to read the cash flow statement in three sections. The first section shows how much money Advance Auto brought in, usually known as net revenue or sales. This is different from earnings because it does not include expenses when determining net revenue for use on this part of the cash flow statement. Next, are operating activities, which show how much money Advance had leftover after paying for its expenses. This number can be calculated in two ways: by subtracting the total of all operating expenses from net revenue or by adding up changes to cash and other assets or liabilities on this part of the statement. The third section is about investing activities, which shows what Advance Auto has done with the money that it received from the sale of assets or what it spent to acquire new ones. This section can be broken down into two parts: investing in existing businesses (in other words, buying more stock) and investing in non-business activities like paying off debt or making acquisitions.
201920202021202220232024 (projected)
Change In Cash(477.9M)416.3M(233.6M)(332.1M)232.7M244.3M
Free Cash Flow395.3M701.9M822.6M296.3M45.0M42.7M
Other Non Cash Items19.1M54.2M964K13.6M4.1M3.9M
Capital Expenditures471.6M267.8M289.6M426.0M242.4M224.9M
Net Income486.9M493.0M616.1M501.9M29.7M28.2M
End Period Cash Flow418.7M835.0M601.4M269.3M503.5M291.1M
Change To Inventory(63.1M)(101.4M)(120.3M)(272.3M)44.8M47.1M
Depreciation238.4M250.1M259.9M283.8M306.5M210.1M
Dividends Paid17.2M56.3M160.9M336.2M(209.3M)(198.8M)
Change Receivables(21.5M)(62.8M)(59.0M)(32.7M)(37.5M)(39.4M)
Net Borrowings32.0M(369.4M)244.5M332.5M382.4M401.5M
Change To Netincome79.7M107.6M132.2M70.9M81.5M60.7M
Investments(462.9M)(266.9M)(287.3M)(424.4M)(277.8M)(291.7M)

Advance Financial Ratios Relationships

Comparative valuation techniques use various fundamental indicators to help in determining Advance Auto's current stock value. Our valuation model uses many indicators to compare Advance Auto value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Advance Auto competition to find correlations between indicators driving Advance Auto's intrinsic value. More Info.
Advance Auto Parts is rated below average in cash and equivalents category among related companies. It is rated fourth in current liabilities category among related companies creating about  2.68  of Current Liabilities per Cash And Equivalents. At this time, Advance Auto's Cash And Equivalents is relatively stable compared to the past year.. Comparative valuation analysis is a catch-all model that can be used if you cannot value Advance Auto by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Advance Auto's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Advance Auto's earnings, one of the primary drivers of an investment's value.

Advance Auto Parts Systematic Risk

Advance Auto's systematic risk plays a vital role in portfolio allocation when considering its stock to be added to a well-diversified portfolio. Advance Auto volatility which cannot be eliminated through diversification, requires returns over the risk-free rate. Over the long run, a well-diversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a trade-off between expected returns and systematic risk and, therefore, can only reduce a portfolio's exposure to systematic risk by sacrificing expected returns on the portfolio.
The output start index for this execution was three with a total number of output elements of fifty-eight. The Beta measures systematic risk based on how returns on Advance Auto Parts correlated with the market. If Beta is less than 0 Advance Auto generally moves in the opposite direction as compared to the market. If Advance Auto Beta is about zero movement of price series is uncorrelated with the movement of the benchmark. if Beta is between zero and one Advance Auto Parts is generally moves in the same direction as, but less than the movement of the market. For Beta = 1 movement of Advance Auto is generally in the same direction as the market. If Beta > 1 Advance Auto moves generally in the same direction as, but more than the movement of the benchmark.

About Advance Auto Financials

What exactly are Advance Auto Financials? Typically, a company's financial statements are the reports that show the financial position of the company. Three primary documents fall into the category of financial statements. These documents include Advance Auto's income statement, its balance sheet, and the statement of cash flows. Potential Advance Auto investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Advance Auto investors may use each financial statement separately, they are all related. The changes in Advance Auto's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Advance Auto's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.

Steps to analyze Advance Auto Financials for Investing

There are several different ways that investors can use financial statements to try and predict whether a stock price will go up or down. Unfortunately, there is no surefire formula, but there are some general guidelines you should consider when looking at the numbers. First, realize what kind of company it is so you know if its revenues are more likely to grow or shrink over time. For example, a software company's revenue is expected to increase yearly due to new products and services that its customers will want to buy. At the same time, a car manufacturer might not be able to sell as many cars when the economy slows down, so it would have less net income during those times. Second, pay attention to its debt-to-equity ratio because this number will tell you how much risk it has. If a company such as Advance Auto is not taking on any additional risks, its debt-to-equity should be less than one. As a general rule of thumb, if the market value or book value (which can be found in the footnotes) of assets exceeds the company's liabilities, then it is probably in good shape. Finally, use other financial statements to determine if a stock price will go up or down because investors are always looking for growth opportunities when they buy new stocks. For example, if you see that the net revenue of Advance has grown by more than 25% over the last five years, then there is a good chance that it will continue growing by at least 20% or more each year. On the other hand, if you see that net revenue has only increased by about 15%, which is barely above inflation levels, then chances are it will not grow much faster than this over time, and investors may shy away from buying it.
In summary, you can determine if Advance Auto's financials are consistent with your investment objective using the following steps:
  • Review Advance Auto's balance sheet accounts, such as liabilities and equity, to understand its overall financial position.
  • Analyze the income statement and examine the company's revenue, expenses, and profits over time to determine its financial performance.
  • Study the cash flow inflows and outflows to understand Advance Auto's liquidity and solvency.
  • Look at the growth rates in revenue, earnings, and cash flow over time to determine its potential for future growth.
  • Compare Advance Auto's financials to those of its peers to see how it stacks up and identify any potential red flags.
  • Use valuation ratios to evaluate the company's financials using commonly used ratios such as the price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and enterprise value-to-earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) ratio to determine if Advance Auto's stock is overvalued or undervalued.
Remember, these are just guidelines and should not be the only basis for investment decisions. It is always important to analyze the leading stock market indicators., conduct additional research and seek professional advice if needed.

Advance Auto Thematic Clasifications

Advance Auto Parts is part of several thematic ideas from Macroaxis Index to Retail. If you are a theme-oriented, socially responsible, and at the same time, a result-driven investor, you can align your investing habits with your values without jeopardizing your expectations about returns. You can easily create an optimal portfolio of stocks, ETFs, funds, or cryptocurrencies based on a specific theme of your liking. Get More Thematic Ideas
Today, most investors in Advance Auto Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Advance Auto's growth ratios. Consistent increases or decreases in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's growth growth rates may not be enough to decide which company is a better investment. That's why investors frequently use static breakdown of Advance Auto growth as a starting point in their analysis.

Price Earnings To Growth Ratio

(1.21)

At this time, Advance Auto's Price Earnings To Growth Ratio is relatively stable compared to the past year.

Advance Auto March 28, 2024 Opportunity Range

Along with financial statement analysis, the daily predictive indicators of Advance Auto help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of Advance Auto Parts. We use our internally-developed statistical techniques to arrive at the intrinsic value of Advance Auto Parts based on widely used predictive technical indicators. In general, we focus on analyzing Advance Stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Advance Auto's daily price indicators and compare them against related drivers.
When determining whether Advance Auto Parts is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Advance Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Advance Auto Parts Stock. Highlighted below are key reports to facilitate an investment decision about Advance Auto Parts Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Advance Auto Parts. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
Note that the Advance Auto Parts information on this page should be used as a complementary analysis to other Advance Auto's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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When running Advance Auto's price analysis, check to measure Advance Auto's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Advance Auto is operating at the current time. Most of Advance Auto's value examination focuses on studying past and present price action to predict the probability of Advance Auto's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Advance Auto's price. Additionally, you may evaluate how the addition of Advance Auto to your portfolios can decrease your overall portfolio volatility.
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Is Advance Auto's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Advance Auto. If investors know Advance will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Advance Auto listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.40)
Dividend Share
2.25
Earnings Share
0.5
Revenue Per Share
189.925
Quarterly Revenue Growth
(0)
The market value of Advance Auto Parts is measured differently than its book value, which is the value of Advance that is recorded on the company's balance sheet. Investors also form their own opinion of Advance Auto's value that differs from its market value or its book value, called intrinsic value, which is Advance Auto's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Advance Auto's market value can be influenced by many factors that don't directly affect Advance Auto's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Advance Auto's value and its price as these two are different measures arrived at by different means. Investors typically determine if Advance Auto is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Advance Auto's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.