Advance Invested Capital vs Operating Income Analysis
AAP Stock | USD 71.61 1.53 2.18% |
Advance Auto financial indicator trend analysis is way more than just evaluating Advance Auto Parts prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Advance Auto Parts is a good investment. Please check the relationship between Advance Auto Invested Capital and its Operating Income accounts. 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.
Invested Capital vs Operating Income
Invested Capital vs Operating Income Correlation Analysis
The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Advance Auto Parts Invested Capital account and Operating Income. At this time, the significance of the direction appears to have no relationship.
The correlation between Advance Auto's Invested Capital and Operating Income is 0.03. Overlapping area represents the amount of variation of Invested Capital that can explain the historical movement of Operating Income in the same time period over historical financial statements of Advance Auto Parts, assuming nothing else is changed. The correlation between historical values of Advance Auto's Invested Capital and Operating Income is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Invested Capital of Advance Auto Parts are associated (or correlated) with its Operating Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Operating Income has no effect on the direction of Invested Capital i.e., Advance Auto's Invested Capital and Operating Income go up and down completely randomly.
Correlation Coefficient | 0.03 |
Relationship Direction | Positive |
Relationship Strength | Insignificant |
Invested Capital
Invested capital represents the total cash investment that shareholders and debt holders have contributed to Advance Auto Parts. There are two different methods for calculating Advance Auto Parts invested capital: operating approach and financing approach. Understanding Advance Auto invested capital allows investors to calculate measures of performance such as return on invested capital or return on capital employed.Operating Income
Operating Income is the amount of profit realized from Advance Auto Parts operations after accounting for operating expenses such as cost of goods sold (COGS), wages and depreciation. Operating income takes the gross income and subtracts other operating expenses and then removes depreciation. Operating Income of Advance Auto Parts is typically a synonym for earnings before interest and taxes (EBIT) and is also commonly referred to as operating profit or recurring profit. Earnings before interest and taxes (EBIT), representing the amount of profit a company generates from its operations.Most indicators from Advance Auto's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Advance Auto Parts current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. 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. As of 04/17/2024, Selling General Administrative is likely to drop to about 2.7 B. In addition to that, Tax Provision is likely to drop to about 55.2 M
2021 | 2022 | 2023 | 2024 (projected) | Gross Profit | 4.9B | 5.0B | 4.5B | 3.2B | Total Revenue | 11.0B | 11.2B | 11.3B | 7.2B |
Advance Auto fundamental ratios Correlations
Click cells to compare fundamentals
Advance Auto Account Relationship Matchups
High Positive Relationship
High Negative Relationship
Advance Auto fundamental ratios Accounts
2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
Total Assets | 11.2B | 11.8B | 12.2B | 12.0B | 13.0B | 13.7B | |
Total Stockholder Equity | 3.5B | 3.6B | 3.1B | 2.7B | 2.5B | 1.8B | |
Net Debt | 2.3B | 2.2B | 2.8B | 3.4B | 3.9B | 4.1B | |
Cash | 418.7M | 835.0M | 601.4M | 269.3M | 503.5M | 279.7M | |
Other Assets | 52.4M | 52.3M | 73.7M | 62.4M | 1.0 | 0.95 | |
Cash And Short Term Investments | 418.7M | 835.0M | 601.4M | 269.3M | 503.5M | 279.7M | |
Common Stock Shares Outstanding | 71.2M | 69.0M | 64.5M | 60.7M | 59.6M | 66.6M | |
Liabilities And Stockholders Equity | 11.2B | 11.8B | 12.2B | 12.0B | 13.0B | 13.7B | |
Inventory | 4.4B | 4.5B | 4.7B | 4.9B | 4.9B | 2.9B | |
Other Stockholder Equity | (189.2M) | (610.4M) | (1.5B) | (2.0B) | (2.0B) | (1.9B) | |
Total Liab | 7.7B | 8.3B | 9.1B | 9.3B | 10.5B | 11.0B | |
Total Current Assets | 5.7B | 6.3B | 6.3B | 6.0B | 6.4B | 3.6B | |
Short Long Term Debt Total | 2.8B | 3.0B | 3.4B | 3.7B | 4.4B | 4.7B | |
Other Current Liab | 1.1B | 1.1B | 1.3B | 645.9M | 565.6M | 338.0M | |
Total Current Liabilities | 4.5B | 4.7B | 5.2B | 5.4B | 5.3B | 2.9B | |
Other Liab | 457.3M | 488.7M | 513.6M | 503.2M | 578.7M | 607.6M | |
Property Plant And Equipment Net | 3.8B | 3.8B | 4.2B | 4.3B | 4.2B | 4.4B | |
Current Deferred Revenue | (478.0M) | (462.6M) | (465.1M) | 416.0M | 118.8M | 181.5M | |
Retained Earnings | 3.8B | 4.2B | 4.6B | 4.7B | 4.6B | 4.8B | |
Accounts Payable | 3.4B | 3.6B | 3.9B | 4.1B | 4.2B | 2.2B | |
Non Current Assets Total | 5.6B | 5.6B | 5.9B | 6.0B | 6.6B | 7.0B | |
Non Currrent Assets Other | 52.4M | 52.3M | 73.7M | (353.6M) | (143.9M) | (136.7M) | |
Long Term Debt | 747.3M | 1.0B | 1.0B | 1.2B | 1.8B | 1.9B | |
Net Receivables | 689.5M | 750.0M | 782.8M | 698.6M | 800.1M | 840.1M | |
Non Current Liabilities Total | 3.2B | 3.5B | 3.9B | 4.0B | 5.2B | 5.4B | |
Other Current Assets | 155.2M | 146.8M | 232.2M | 163.7M | 215.7M | 226.5M | |
Property Plant And Equipment Gross | 3.8B | 3.8B | 1.5B | 4.3B | 7.1B | 7.4B | |
Accumulated Other Comprehensive Income | (34.6M) | (26.8M) | (22.6M) | (45.1M) | (52.2M) | (49.6M) | |
Short Term Debt | 478.0M | 462.6M | 465.1M | 185M | 445.1M | 467.3M | |
Property Plant Equipment | 1.4B | 1.5B | 1.5B | 4.3B | 4.9B | 5.2B | |
Treasury Stock | (426.0M) | (924.4M) | (1.4B) | (2.3B) | (2.1B) | (2.0B) | |
Good Will | 992.2M | 993.6M | 993.7M | 990.5M | 991.7M | 608.6M | |
Intangible Assets | 709.8M | 681.1M | 651.2M | 620.9M | 593.3M | 393.2M | |
Net Tangible Assets | 3.9B | 4.9B | 2.5B | 1.1B | 1.2B | 2.0B | |
Retained Earnings Total Equity | 3.3B | 3.8B | 4.2B | 4.6B | 5.3B | 2.7B | |
Long Term Debt Total | 747.3M | 1.0B | 1.0B | 1.2B | 1.4B | 1.0B | |
Capital Surpluse | 735.2M | 783.7M | 845.4M | 897.6M | 1.0B | 723.8M | |
Deferred Long Term Liab | 303.6M | 318.4M | 334.0M | 342.4M | 393.8M | 218.7M |
Pair Trading with Advance Auto
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Advance Auto position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Advance Auto will appreciate offsetting losses from the drop in the long position's value.Moving together with Advance Stock
0.64 | M | Macys Inc Financial Report 6th of June 2024 | PairCorr |
0.87 | W | Wayfair Financial Report 2nd of May 2024 | PairCorr |
0.92 | DIBS | 1StdibsCom Financial Report 8th of May 2024 | PairCorr |
0.91 | AN | AutoNation Financial Report 18th of April 2024 | PairCorr |
Moving against Advance Stock
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0.71 | WOOF | Pet Acquisition LLC Financial Report 22nd of May 2024 | PairCorr |
0.64 | ETSY | Etsy Inc Financial Report 1st of May 2024 | PairCorr |
0.6 | BIG | Big Lots Upward Rally | PairCorr |
The ability to find closely correlated positions to Advance Auto could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Advance Auto when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Advance Auto - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Advance Auto Parts to buy it.
The correlation of Advance Auto is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Advance Auto moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Advance Auto Parts moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Advance Auto can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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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.