Advance Auto Parts, Inc.
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Advance Auto Parts, Inc. Financial Snapshot
Operating Performance
Fast Facts
5008 Airport Road, Roanoke, 24012,United The company reported revenue of US$5,925.20
Headquarters Address
States of America million during the fiscal year 2010 (2010). The
company's revenue grew at a CAGR of 6.44% during
Telephone + 1 540 3624911
2006–2010, with an annual growth of 9.47% over
2009. In 2010, the company recorded an operating
Fax N/A margin of 9.87%, as against 8.39% in 2009.
Website www.advanceautoparts.com
Revenue and Margins
Ticker Symbol, Stock Exchange AAP, New York Stock Exchange
Number of Employees 29,000
Fiscal Year End December
Revenue (in US$ million) 5,925.20
SWOT Analysis
Strengths Weaknesses Return on Equity
Advanced technology Geographical concentration The company recorded a return on equity (ROE) of
33.29% for 2010, as compared to its peers, Genuine
Parts Company (Ticker: GPC), O''Reilly Automotive,
Broad product offerings Legal proceedings Inc. (Ticker: ORLY) and AutoZone, Inc. (Ticker: AZO),
which recorded ROEs of 17.02%, 13.07% and 0.00%
Strong financial performance respectively. The company reported a net profit
margin of 9.87% in 2010.
Opportunities Threats
Return on Equity
Expansion through opening of new
Rise in labor wages
stores
Growth of web-based stores Stringent regulations
New auto investment plan in the US
Liquidity Position
The company reported a current ratio of 1.15 in 2010,
as compared to its peers, Genuine Parts Company,
O''Reilly Automotive, Inc. and AutoZone, Inc., which
recorded current ratios of 2.24, 0.00 and 0.85
respectively. As of December 2010, the company
recorded cash and short-term investments of worth
US$59.21 million, against US$0.97 million current
debt. The company reported a debt to equity ratio of
0.33 in 2010 as compared to its peers, Genuine Parts
Company, O''Reilly Automotive, Inc. and AutoZone,
Inc., which recorded debt to equity ratios of 0.18, 0.00
and -3.97 respectively.
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Advance Auto Parts, Inc. - SWOT Profile Page 1
Advance Auto Parts, Inc.
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview .................................................................................................................................................5
1.2 Business Description ...............................................................................................................................................5
1.3 Major Products and Services ...................................................................................................................................6
2 Analysis of Key Performance Indicators ............................................................................................... 7
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ...........................................7
2.2 Key Financial Performance Indicators ...................................................................................................................10
2.2.1 Revenue and Operating Profit .......................................................................................................................10
2.2.2 Asset, Liabilities and Capex ..........................................................................................................................11
2.2.3 Net Debt vs. Gearing Ratio ............................................................................................................................12
2.2.4 Operational Efficiency ....................................................................................................................................13
2.2.5 Solvency ........................................................................................................................................................14
2.2.6 Valuation ........................................................................................................................................................15
2.3 Competitive Benchmarking ....................................................................................................................................16
2.3.1 Market Capitalization .....................................................................................................................................16
2.3.2 Efficiency .......................................................................................................................................................17
2.3.3 Capital Expenditure .......................................................................................................................................18
2.3.4 Valuation ........................................................................................................................................................19
2.3.5 Turnover – Inventory and Asset ....................................................................................................................20
3 Recent Developments ........................................................................................................................... 21
4 SWOT Analysis ...................................................................................................................................... 23
4.1 SWOT Anal