Detailed financial statements for Advance Auto Parts, Inc. (AAP): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
Advance Auto Parts, Inc. operates as a leading retailer and supplier of a comprehensive array of automotive replacement components, accessories, batteries, and essential maintenance supplies. Its extensive inventory caters to a wide spectrum of vehicles, including domestic and imported passenger cars, vans, sport utility vehicles, and both light and heavy-duty trucks.
Analysis Summary
Advance Auto Parts, Inc. reported revenue of $8.60B in the most recent fiscal year, growing at a 5-year CAGR of -3.2%. Net income reached $44.0M, with a -38.3% 5-year CAGR.
Trailing-twelve-month margins: gross margin 44.7%, operating margin 3.7%, net margin 1.0%.
At $45.73 (closing price, October 29, 2026), AAP trades at a P/E of 33.33 and an ROE of 3.79%. Market capitalisation stands at $2.8B.
Balance sheet quality for AAP: current ratio of 1.7, net debt of $2.10B. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is below average: free cash flow of -$298.0M represents -677% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2021 | 2022 | 2022 | 2023 | 2024 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $9.57B | $9.37B | $9.58B | $9.71B | $10.11B | $11.00B | $9.15B | $9.21B | $9.09B | $8.60B |
| Cost of Revenue | $5.31B | $5.29B | $5.36B | $5.45B | $5.62B | $6.07B | $4.92B | $5.35B | $5.68B | $4.87B |
| Gross Profit | $4.26B | $4.09B | $4.22B | $4.25B | $4.48B | $4.92B | $4.23B | $3.86B | $3.41B | $3.73B |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Selling, General & Admin | $3.47B | $3.51B | $3.62B | $3.58B | $3.73B | $4.10B | $3.71B | $3.81B | $3.81B | $3.57B |
| Operating Expenses | $3.47B | $3.51B | $3.62B | $3.58B | $3.73B | $4.10B | $3.71B | $3.81B | $3.81B | $3.57B |
| Operating Income | $787.6M | $570.2M | $604.3M | $677.2M | $749.9M | $822.4M | $524.6M | $55.0M | -$404.0M | $161.0M |
| EBITDA | $1.06B | $828.3M | $850.0M | $916.0M | $948.0M | $1.08B | $759.4M | $310.0M | -$395.0M | $320.0M |
| Interest Expense | $59.9M | $58.8M | $56.6M | $39.9M | $46.9M | $37.8M | $50.8M | $88.0M | $81.0M | $139.0M |
| Pre-tax Income | $738.8M | $520.3M | $555.3M | $637.7M | $651.0M | $782.5M | $460.2M | -$47.0M | -$768.0M | -$91.0M |
| Income Tax | $279.2M | $44.8M | $131.4M | $150.8M | $158.0M | $185.9M | $99.7M | -$17.0M | -$181.0M | -$159.0M |
| Net Income | $459.6M | $475.5M | $423.8M | $486.9M | $493.0M | $596.6M | $464.4M | $30.0M | -$336.0M | $44.0M |
| EPS | $6.22 | $6.44 | $5.75 | $6.87 | $7.17 | $9.62 | $7.70 | $0.50 | $-5.63 | $0.73 |
| EPS (Diluted) | $6.20 | $6.42 | $5.73 | $6.84 | $7.14 | $9.55 | $7.65 | $0.50 | $-5.63 | $0.73 |
| Shares Outstanding (Diluted) | 73.9 M | 74.1 M | 74.0 M | 71.2 M | 69.0 M | 64.5 M | 60.7 M | 59.6 M | 59.6 M | 60.6 M |
Income Statement (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Revenue | $2.04B | $1.97B | $2.61B | $2.00B |
| Gross Profit | $881.0M | $869.0M | $1.18B | $923.0M |
| Operating Income | $55.0M | $68.0M | $99.0M | $101.0M |
| EBITDA | $252.0M | $132.0M | $174.0M | $179.0M |
| Net Income | -$1.0M | $6.0M | $24.0M | $55.0M |
| EPS | $-0.02 | $0.10 | $0.40 | $0.91 |
| EPS (Diluted) | $-0.02 | $0.10 | $0.39 | $0.90 |
Balance Sheet (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2021 | 2022 | 2022 | 2023 | 2024 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $135.2M | $546.9M | $896.5M | $418.7M | $835.0M | $601.4M | $270.8M | $488.0M | $1.87B | $3.12B |
| Short-term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Receivables | $641.3M | $606.4M | $625.0M | $689.5M | $750.0M | $782.8M | $684.0M | $609.5M | $544.0M | $380.0M |
| Inventory | $4.33B | $4.17B | $4.36B | $4.43B | $4.54B | $4.66B | $4.90B | $3.89B | $3.61B | $3.65B |
| Total Current Assets | $5.17B | $5.43B | $6.08B | $5.70B | $6.27B | $6.28B | $6.01B | $6.38B | $6.14B | $7.29B |
| Property, Plant & Equipment | $1.45B | $1.39B | $1.37B | $3.80B | $3.84B | $4.20B | $4.30B | $3.90B | $3.58B | $3.43B |
| Goodwill | $990.9M | $994.3M | $990.2M | $992.2M | $993.6M | $993.7M | $990.5M | $601.2M | $598.0M | $600.0M |
| Intangible Assets | $640.9M | $597.7M | $550.6M | $709.8M | $681.1M | $651.2M | $620.9M | $419.2M | $406.0M | $400.0M |
| Total Assets | $8.32B | $8.48B | $9.04B | $11.25B | $11.84B | $12.19B | $11.99B | $12.28B | $10.80B | $11.83B |
| Accounts Payable | $3.09B | $2.89B | $3.17B | $3.42B | $3.64B | $3.92B | $4.18B | $3.53B | $3.41B | $2.98B |
| Short-term Debt | $306,000 | 0 | 0 | 0 | 0 | 0 | $185.0M | 0 | 0 | 0 |
| Total Current Liabilities | $3.68B | $3.48B | $3.89B | $4.48B | $4.74B | $5.18B | $5.42B | $5.31B | $4.67B | $4.18B |
| Long-term Debt | $1.04B | $1.04B | $1.05B | $747.3M | $1.03B | $1.03B | $1.19B | $1.79B | $1.79B | $3.41B |
| Total Liabilities | $5.40B | $5.07B | $5.49B | $7.70B | $8.28B | $9.07B | $9.39B | $9.76B | $8.63B | $9.63B |
| Retained Earnings | $2.46B | $2.92B | $3.33B | $3.77B | $4.20B | $4.61B | $4.67B | $4.56B | $4.16B | $4.15B |
| Total Equity | $2.92B | $3.42B | $3.55B | $3.55B | $3.56B | $3.13B | $2.60B | $2.52B | $2.17B | $2.20B |
| Total Debt | $1.04B | $1.04B | $1.05B | $2.76B | $3.05B | $3.37B | $3.65B | $3.83B | $3.69B | $5.22B |
| Net Debt | $908.1M | $497.4M | $149.2M | $2.35B | $2.21B | $2.77B | $3.38B | $3.34B | $1.82B | $2.10B |
| Working Capital | $1.50B | $1.95B | $2.20B | $1.22B | $1.53B | $1.10B | $594.0M | $1.07B | $1.48B | $3.11B |
Balance Sheet (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Cash & Equivalents | $3.17B | $3.12B | $2.96B | $3.12B |
| Total Assets | $12.06B | $11.83B | $11.80B | $12.02B |
| Total Liabilities | $9.86B | $9.63B | $9.59B | $9.76B |
| Total Equity | $2.19B | $2.20B | $2.21B | $2.26B |
| Total Debt | $5.26B | $5.22B | $5.23B | $5.21B |
Cash Flow (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2021 | 2022 | 2022 | 2023 | 2024 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $459.6M | $475.5M | $423.8M | $486.9M | $493.0M | $596.6M | $360.5M | -$30.0M | -$587.0M | $68.0M |
| Depreciation & Amortization | $258.4M | $249.3M | $238.2M | $238.4M | $250.1M | $259.9M | $248.3M | $269.0M | $292.0M | $272.0M |
| Stock-based Compensation | $20.5M | $35.3M | $27.8M | $37.4M | $45.3M | $63.1M | $46.5M | $40.9M | $42.2M | $36.0M |
| Change in Working Capital | -$239.3M | -$28.2M | $87.1M | $61.9M | $119.0M | $127.7M | -$67.9M | -$105.5M | $400.5M | -$482.0M |
| Operating Cash Flow | $523.3M | $600.8M | $811.0M | $866.9M | $969.7M | $1.11B | $736.6M | $287.4M | $84.6M | -$46.0M |
| Capital Expenditure | -$259.6M | -$189.8M | -$193.7M | -$471.6M | -$267.8M | -$289.6M | -$400.7M | -$225.7M | -$180.8M | -$252.0M |
| Acquisitions | -$4.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | $21.0M |
| Stock Repurchased | -$18.4M | -$6.5M | -$281.4M | -$498.4M | -$469.7M | -$906.2M | -$618.5M | -$14.5M | -$6.5M | 0 |
| Dividends Paid | -$17.7M | -$17.9M | -$17.8M | -$17.2M | -$56.3M | -$160.9M | -$336.2M | -$209.3M | -$59.9M | -$60.0M |
| Free Cash Flow | $263.7M | $411.0M | $617.3M | $395.3M | $701.9M | $817.4M | $335.9M | $61.7M | -$96.2M | -$298.0M |
Cash Flow (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Operating Cash Flow | -$12.0M | $72.0M | -$19.0M | $271.0M |
| Capital Expenditure | -$64.0M | -$93.0M | -$56.0M | -$76.0M |
| Free Cash Flow | -$76.0M | -$21.0M | -$75.0M | $195.0M |
| Dividends Paid | -$15.0M | -$15.0M | -$30.0M | 0 |
| Stock-based Compensation | $9.0M | $7.0M | $12.0M | 0 |
Growth & Margins (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2021 | 2022 | 2022 | 2023 | 2024 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | -2.0% | +2.2% | +1.3% | +4.1% | +8.8% | -16.8% | +0.7% | -1.2% | -5.4% | |
| Net Income Growth (YoY) | +3.5% | -10.9% | +14.9% | +1.3% | +21.0% | -22.2% | -93.5% | -1,220.0% | +113.1% | |
| EPS Growth (YoY) | +3.5% | -10.7% | +19.5% | +4.4% | +34.2% | -20.0% | -93.5% | -1,226.0% | +113.0% | |
| Shares Change (YoY) | +0.3% | -0.2% | -3.8% | -3.0% | -6.5% | -5.9% | -1.8% | +0.1% | +1.6% | |
| FCF Growth (YoY) | +55.9% | +50.2% | -36.0% | +77.6% | +16.5% | -58.9% | -81.6% | -255.9% | -209.9% | |
| Gross Margin | 44.5% | 43.6% | 44.0% | 43.8% | 44.3% | 44.8% | 46.3% | 41.9% | 37.5% | 43.4% |
| Operating Margin | 8.2% | 6.1% | 6.3% | 7.0% | 7.4% | 7.5% | 5.7% | 0.6% | -4.4% | 1.9% |
| EBITDA Margin | 11.0% | 8.8% | 8.9% | 9.4% | 9.4% | 9.8% | 8.3% | 3.4% | -4.3% | 3.7% |
| Net Margin | 4.8% | 5.1% | 4.4% | 5.0% | 4.9% | 5.4% | 5.1% | 0.3% | -3.7% | 0.5% |
| FCF Margin | 2.8% | 4.4% | 6.4% | 4.1% | 6.9% | 7.4% | 3.7% | 0.7% | -1.1% | -3.5% |
| Effective Tax Rate | 37.8% | 8.6% | 23.7% | 23.7% | 24.3% | 23.8% | 21.7% | 36.2% | 23.6% | 174.7% |
Per-Share Data (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2021 | 2022 | 2022 | 2023 | 2024 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $3.57 | $5.55 | $8.34 | $5.55 | $10.17 | $12.67 | $5.53 | $1.04 | $-1.61 | $-4.92 |
| Dividends Per Share | $0.24 | $0.24 | $0.24 | $0.24 | $0.82 | $2.49 | $5.54 | $3.51 | $1.00 | $0.99 |
| Shares Outstanding (Basic) | 73.6 M | 73.8 M | 73.7 M | 70.9 M | 68.7 M | 64.0 M | 60.4 M | 59.4 M | 59.6 M | 59.9 M |
What to look at in Consumer Cyclical companies
- 5y avg operating margin (Cycle average) — Look at the cycle average, not the current year (peak or trough).
- Inventory turnover (>=4x/year) — Healthy retail rotates inventory fast. A drop signals weak demand.
- 5y avg ROIC (>=12%) — Cyclicals with avg ROIC >12% are structural winners.
- Net debt / EBITDA (peak) (<3x trough) — In cyclicals debt kills in recessions.
- Current Ratio (>1.5x) — Survives 12-18 months without operating cash.
- Altman Z-Score (>2.99 safe) — Bankruptcy model — key in cyclicals sensitive to recessions.
Profitability
| Return on Equity | 3.79% |
| Return on Invested Capital | 3.49% |
| Return on Assets | 0.70% |
| Gross Margin | 44.66% |
| Operating Margin | 3.75% |
| Net Margin | 0.97% |
Financial Health
| Debt / Equity | 2.31 |
| Current Ratio | 1.75 |
| Piotroski F-Score | 4 |
| Altman Z-Score | 1.72 |
Key Ratios (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2021 | 2022 | 2022 | 2023 | 2024 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 27.19 | 15.48 | 27.04 | 23.05 | 21.97 | 24.94 | 19.09 | 122.06 | -7.83 | 53.27 |
| P/B | 4.27 | 2.16 | 3.23 | 3.16 | 3.04 | 4.91 | 3.41 | 1.44 | 1.21 | 1.06 |
| P/S | 1.30 | 0.79 | 1.20 | 1.16 | 1.07 | 1.40 | 0.97 | 0.39 | 0.29 | 0.27 |
| Gross Margin | 44.5% | 43.6% | 44.0% | 43.8% | 44.3% | 44.8% | 46.3% | 41.9% | 37.5% | 43.4% |
| Operating Margin | 8.2% | 6.1% | 6.3% | 7.0% | 7.4% | 7.5% | 5.7% | 0.6% | -4.4% | 1.9% |
| Net Margin | 4.8% | 5.1% | 4.4% | 5.0% | 4.9% | 5.4% | 5.1% | 0.3% | -3.7% | 0.5% |
Related companies: ASO · COLM · PTON · AEO · BKE · RH
Explore sector: Consumer Cyclical · Specialty Retail
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