showing the working

← Advance Auto Parts

The business behind the dividend

MeasureAAPMedianFormula
Return on equity2.0%10.6%Net income ÷ shareholders’ equity
Return on capital employed-0.8%10.0%Operating income ÷ (equity + total debt)
Owner earnings$64.00m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$-298.00m$155.08mOperating cash flow − capital expenditure
Operating margin-0.5%14.3%Operating income ÷ revenue
Net margin0.5%10.1%Net income ÷ revenue
Debt to equity1.55x0.73xTotal debt ÷ shareholders’ equity
Interest cover-0.57x4.22xOperating income ÷ interest expense
Current ratio1.75x1.55xCurrent assets ÷ current liabilities
Long-term debt to working capital1.10x1.88xLong-term debt ÷ (current assets − current liabilities)
Cash conversion-1.05x1.66xOperating cash flow ÷ net income
Accruals0.8%-3.1%(Net income − operating cash flow) ÷ total assets

Ten years of it

The same measures, for every year the filings support. One year is a fact; a row is a business.

Measure2026202420232022202220212019201820172016Median
Return on equity2.0%-15.5%1.2%17.9%19.4%13.9%13.7%11.9%13.9%15.8%13.7%
Return on capital employed-0.8%-18.0%0.9%13.2%20.0%16.4%15.8%13.1%12.8%19.9%13.1%
Operating margin-0.5%-7.8%0.4%5.7%7.5%7.4%7.0%6.3%6.1%8.2%6.1%
Net margin0.5%-3.7%0.3%5.1%5.4%4.9%5.0%4.4%5.1%4.8%4.8%
Debt to equity1.55x0.82x0.71x0.53x0.34x0.29x0.21x0.29x0.31x0.36x0.34x
Current ratio1.75x1.32x1.20x1.11x1.20x1.32x1.27x1.57x1.56x1.41x1.32x
Cash conversion-1.05x9.57x1.59x1.86x1.97x1.78x1.91x1.26x1.14x1.78x