What is Advance Auto Parts Return-on-Tangible-Equity?
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Advance Auto Parts's annualized net income for the quarter that ended in Mar. 2025 was $96 Mil. Advance Auto Parts's average shareholder tangible equity for the quarter that ended in Mar. 2025 was $1,179 Mil. Therefore, Advance Auto Parts's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 was 8.14%.
The historical rank and industry rank for Advance Auto Parts's Return-on-Tangible-Equity or its related term are showing as below:
AAP'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -28.22 Med: 28.51 Max: 90.74
Current: -28.22
During the past 13 years, Advance Auto Parts's highest Return-on-Tangible-Equity was 90.74%. The lowest was -28.22%. And the median was 28.51%.
AAP's Return-on-Tangible-Equity is ranked worse than 93.72% of 1258
companies
in the Vehicles & Parts industry
Industry Median: 7.49
vs AAP: -28.22
Advance Auto Parts Return-on-Tangible-Equity Historical Data
The historical data trend for Advance Auto Parts's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Chart
Competitive Comparison of Advance Auto Parts's Return-on-Tangible-Equity
For the Auto Parts subindustry, Advance Auto Parts's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Advance Auto Parts's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Advance Auto Parts's Return-on-Tangible-Equity falls into.
* 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 annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
Advance Auto Parts (NYSE:AAP) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Advance Auto Parts Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Advance Auto Parts's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
Advance Auto Parts is a leading auto-parts retailer in North America with more than 4,000 store and branch locations. About half of the firm's sales are geared toward the professional channel, with the remaining sales in the do-it-yourself market. Through its vast store footprint and distribution network, Advance manages thousands of stock-keeping units for 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.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
AAP has been successfully added to your 