What is Advance Auto Parts's operating margin?

Advance Auto Parts (AAP) reported operating margin of -10.5% in Q3 2025.

What is the long-term trend for Advance Auto Parts's operating margin?

Over 3 years (2020 to 2024), Advance Auto Parts's operating margin has grown at a 1.9% compound annual growth rate (CAGR), from 7.4% to -7.8%.

What does operating margin mean?

Operating income as a percentage of revenue (trailing twelve months). Captures profitability from core operations after both cost of revenue and operating expenses, but before interest and taxes.

Advance Auto Parts AAP Operating margin

Operating margin at other companies

Walmart WMT

4.2%-0.2pp

AutoZoneAZO

18%-1.6pp

O'Reilly AutomotiveORLY

19.6%+0.4pp

AmazonAMZN

11.5%+0.5pp

LKQLKQ

6.9%-1.5pp

Rush EnterprisesRUSHB

6%-0.5pp

Other financials

Income statement

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Revenue$2.6B+1.2%

Gross profit$1.2B+6.4%

Operating income$69.0M+153%

Net income$24.0M0.0%

EPS (diluted)$0.39-2.5%

Balance sheet

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Cash & equivalents$3.0B+76.8%

Total debt$5.2B+42.4%

Total equity$2.2B+0.7%

Total assets$11.8B+11.1%

Cash flow

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Operating cash flow-$19.0M+87.8%

CapEx$56.0M+33.3%

Free cash flow-$75.0M+62.1%

Valuation

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Market cap$3.63B+82.2%

Enterprise value$5.9B+47.6%

P/E82.4×—

P/S0.4×+0.2×

Profitability

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Gross margin44.1%+6.8pp

Net margin0.5%+0.3pp

FCF margin-5.2%-13.9pp

Returns & leverage

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Return on equity2%+1.1pp

Debt / equity2.4×+0.7×

Current ratio1.8×+0.5×

Where this comes from

Calculated from Advance Auto Parts’s reported figures.

operating income/total revenue=-10.5%

Based on trailing twelve months.

The official record: Advance Auto Parts’s 10-Q, filed October 30, 2025, on SEC EDGAR. View the filing →

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Questions, answered.

What is Advance Auto Parts's operating margin?: Advance Auto Parts (AAP) reported operating margin of -10.5% in Q3 2025.
What is the long-term trend for Advance Auto Parts's operating margin?: Over 3 years (2020 to 2024), Advance Auto Parts's operating margin has grown at a 1.9% compound annual growth rate (CAGR), from 7.4% to -7.8%.
What does operating margin mean?: Operating income as a percentage of revenue (trailing twelve months). Captures profitability from core operations after both cost of revenue and operating expenses, but before interest and taxes.