The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Advance Auto has an asset utilization ratio of 501.21 percent. This suggests that the company is making $5.01 for each dollar of assets. An increasing asset utilization means that Advance Auto Parts is more efficient with each dollar of assets it utilizes for everyday operations.
There are currently many different techniques concerning forecasting the market as a whole as well as
predicting future values of individual securities such as Advance Auto Parts. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the
market sentiment and impact your forecasting results.
Predictive Modules for Advance Auto
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Advance Auto's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Advance Auto. Your research has to be compared to or analyzed against Advance Auto's peers to derive any actionable benefits. When done correctly, Advance Auto's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Advance Auto Parts.
How important is Advance Auto's Liquidity
Advance Auto
financial leverage refers to using borrowed capital as a funding source to finance Advance Auto Parts ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Advance Auto financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Advance Auto's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Advance Auto's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Advance Auto's total debt and its cash.
Advance Auto Gross Profit
Advance Auto Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Advance Auto previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Advance Auto Gross Profit growth over the last 10 years. Please check Advance Auto's
gross profit and other
fundamental indicators for more details.
Breaking down Advance Auto Indicators
The recent indifference towards the small price fluctuations of Advance Auto Parts could raise concerns from insiders as the firm it trading at a share price of
155.51 on
1,913,889 in volume. The company directors and management did not add any value to Advance Auto investors in
January. However, most investors can still diversify their portfolios with Advance Auto Parts to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.96. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
Returns Breakdown
| Return on Investment | 28.71 |
| Return on Assets | 0.0557 |
| Return on Equity | 0.18 |
| Return Capital | 0.19 |
| Return on Sales | 0.0757 |
Advance showing symptom of lower volatility
Recent Information Ratio is up to -0.06. Price may decline again. Advance Auto Parts exhibits very low volatility with skewness of -0.07 and kurtosis of 1.79. However, we advise investors to further study Advance Auto Parts technical indicators to make sure all market info is available and is reliable.
The Bottom Line
Although other entities within the specialty retail industry are still a little expensive, even after the recent corrections, Advance Auto may offer a potential longer-term growth to insiders. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither take in nor quit any shares of Advance Auto at this time. The Advance Auto Parts risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Advance Auto.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Advance Auto Parts. Please refer to our
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