Advance Operating Income vs Net Income Analysis

AAP Stock

USD 78.00 0.78 1.01%

Advance Auto financial indicator trend analysis is way more than just evaluating Advance Auto Parts prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Advance Auto Parts is a good investment. Please check the relationship between Advance Auto Operating Income and its Net Income accounts. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Advance Auto Parts. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.

Operating Income vs Net Income

Operating Income vs Net Income Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Advance Auto Parts Operating Income account and Net Income. At this time, the significance of the direction appears to have almost identical trend.

The correlation between Advance Auto's Operating Income and Net Income is 0.97. Overlapping area represents the amount of variation of Operating Income that can explain the historical movement of Net Income in the same time period over historical financial statements of Advance Auto Parts, assuming nothing else is changed. The correlation between historical values of Advance Auto's Operating Income and Net Income is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Operating Income of Advance Auto Parts are associated (or correlated) with its Net Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Net Income has no effect on the direction of Operating Income i.e., Advance Auto's Operating Income and Net Income go up and down completely randomly.

Correlation Coefficient

0.97

Relationship Direction	Positive
Relationship Strength	Very Strong

View All Relationships

Operating Income

Operating Income is the amount of profit realized from Advance Auto Parts operations after accounting for operating expenses such as cost of goods sold (COGS), wages and depreciation. Operating income takes the gross income and subtracts other operating expenses and then removes depreciation. Operating Income of Advance Auto Parts is typically a synonym for earnings before interest and taxes (EBIT) and is also commonly referred to as operating profit or recurring profit. Earnings before interest and taxes (EBIT), representing the amount of profit a company generates from its operations.

Net Income

Net income is one of the most important fundamental items in finance. It plays a large role in Advance Auto Parts financial statement analysis. It represents the amount of money remaining after all of Advance Auto Parts operating expenses, interest, taxes and preferred stock dividends have been deducted from a company total revenue.

Most indicators from Advance Auto's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Advance Auto Parts current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Advance Auto Parts. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.

As of 04/24/2024, Selling General Administrative is likely to drop to about 2.7 B. In addition to that, Tax Provision is likely to drop to about 55.2 M

	2021	2022	2023	2024 (projected)
Gross Profit	4.9B	5.0B	4.5B	3.2B
Total Revenue	11.0B	11.2B	11.3B	7.2B

Gross Profit Total Revenue

Advance Auto fundamental ratios Correlations

	Total Assets	Total Stockholder Equity	Net Debt	Cash	Other Assets	Cash And Short Term Investments	Common Stock Shares Outstanding	Inventory	Other Stockholder Equity	Total Liab	Total Current Assets	Short Long Term Debt Total	Other Current Liab	Total Current Liabilities	Other Liab	Property Plant And Equipment Net	Current Deferred Revenue	Retained Earnings	Accounts Payable	Non Current Assets Total	Non Currrent Assets Other	Long Term Debt	Net Receivables	Common Stock Total Equity	Non Current Liabilities Total	Other Current Assets
Total Assets		0.72	0.87	0.2	-0.57	0.2	-0.22	0.8	-0.6	0.98	0.8	0.89	0.66	0.84	0.77	0.89	-0.43	0.95	0.82	0.97	-0.45	0.68	0.97	-0.56	0.92	0.9
Total Stockholder Equity	0.72		0.33	0.38	-0.54	0.38	0.17	0.9	-0.03	0.56	0.92	0.36	0.72	0.8	0.77	0.46	-0.4	0.69	0.82	0.59	0.03	0.25	0.79	-0.56	0.41	0.61
Net Debt	0.87	0.33		-0.11	-0.32	-0.11	-0.51	0.53	-0.82	0.95	0.49	0.98	0.47	0.65	0.54	0.94	-0.4	0.84	0.61	0.95	-0.65	0.68	0.79	-0.29	0.98	0.8
Cash	0.2	0.38	-0.11		-0.33	1.0	0.15	0.21	0.09	0.13	0.41	0.08	0.46	0.26	0.01	0.14	-0.3	0.18	0.25	0.09	0.13	0.0	0.13	-0.34	0.07	0.24
Other Assets	-0.57	-0.54	-0.32	-0.33		-0.33	-0.56	-0.62	0.18	-0.51	-0.64	-0.3	-0.26	-0.63	-0.46	-0.39	-0.05	-0.53	-0.65	-0.45	0.13	-0.36	-0.53	1.0	-0.35	-0.45
Cash And Short Term Investments	0.2	0.38	-0.11	1.0	-0.33		0.15	0.21	0.09	0.13	0.41	0.08	0.46	0.26	0.01	0.14	-0.3	0.18	0.25	0.09	0.13	0.0	0.13	-0.34	0.07	0.24
Common Stock Shares Outstanding	-0.22	0.17	-0.51	0.15	-0.56	0.15		0.04	0.57	-0.34	0.04	-0.55	-0.21	-0.1	-0.01	-0.45	0.33	-0.25	-0.04	-0.37	0.54	-0.23	-0.16	-0.58	-0.49	-0.29
Inventory	0.8	0.9	0.53	0.21	-0.62	0.21	0.04		-0.23	0.7	0.98	0.51	0.6	0.95	0.78	0.57	-0.24	0.75	0.98	0.7	-0.22	0.45	0.85	-0.64	0.56	0.67
Other Stockholder Equity	-0.6	-0.03	-0.82	0.09	0.18	0.09	0.57	-0.23		-0.72	-0.21	-0.81	-0.4	-0.43	-0.25	-0.81	0.33	-0.73	-0.35	-0.72	0.74	-0.37	-0.44	0.14	-0.78	-0.65
Total Liab	0.98	0.56	0.95	0.13	-0.51	0.13	-0.34	0.7	-0.72		0.69	0.96	0.58	0.79	0.68	0.94	-0.4	0.92	0.76	0.99	-0.56	0.73	0.91	-0.49	0.98	0.89
Total Current Assets	0.8	0.92	0.49	0.41	-0.64	0.41	0.04	0.98	-0.21	0.69		0.51	0.68	0.95	0.73	0.58	-0.31	0.74	0.97	0.69	-0.17	0.43	0.83	-0.66	0.56	0.69
Short Long Term Debt Total	0.89	0.36	0.98	0.08	-0.3	0.08	-0.55	0.51	-0.81	0.96	0.51		0.55	0.65	0.51	0.96	-0.48	0.85	0.59	0.96	-0.63	0.68	0.78	-0.27	0.99	0.83
Other Current Liab	0.66	0.72	0.47	0.46	-0.26	0.46	-0.21	0.6	-0.4	0.58	0.68	0.55		0.68	0.37	0.7	-0.85	0.73	0.62	0.65	-0.07	0.03	0.6	-0.27	0.53	0.7
Total Current Liabilities	0.84	0.8	0.65	0.26	-0.63	0.26	-0.1	0.95	-0.43	0.79	0.95	0.65	0.68		0.67	0.73	-0.35	0.81	0.99	0.79	-0.35	0.45	0.83	-0.64	0.68	0.73
Other Liab	0.77	0.77	0.54	0.01	-0.46	0.01	-0.01	0.78	-0.25	0.68	0.73	0.51	0.37	0.67		0.51	-0.11	0.73	0.7	0.68	-0.19	0.52	0.86	-0.47	0.59	0.63
Property Plant And Equipment Net	0.89	0.46	0.94	0.14	-0.39	0.14	-0.45	0.57	-0.81	0.94	0.58	0.96	0.7	0.73	0.51		-0.6	0.9	0.66	0.96	-0.58	0.48	0.77	-0.37	0.94	0.82
Current Deferred Revenue	-0.43	-0.4	-0.4	-0.3	-0.05	-0.3	0.33	-0.24	0.33	-0.4	-0.31	-0.48	-0.85	-0.35	-0.11	-0.6		-0.47	-0.27	-0.5	-0.14	0.12	-0.36	-0.06	-0.44	-0.47
Retained Earnings	0.95	0.69	0.84	0.18	-0.53	0.18	-0.25	0.75	-0.73	0.92	0.74	0.85	0.73	0.81	0.73	0.9	-0.47		0.77	0.94	-0.51	0.51	0.88	-0.51	0.87	0.9
Accounts Payable	0.82	0.82	0.61	0.25	-0.65	0.25	-0.04	0.98	-0.35	0.76	0.97	0.59	0.62	0.99	0.7	0.66	-0.27	0.77		0.75	-0.31	0.47	0.83	-0.67	0.63	0.7
Non Current Assets Total	0.97	0.59	0.95	0.09	-0.45	0.09	-0.37	0.7	-0.72	0.99	0.69	0.96	0.65	0.79	0.68	0.96	-0.5	0.94	0.75		-0.53	0.64	0.91	-0.43	0.97	0.88
Non Currrent Assets Other	-0.45	0.03	-0.65	0.13	0.13	0.13	0.54	-0.22	0.74	-0.56	-0.17	-0.63	-0.07	-0.35	-0.19	-0.58	-0.14	-0.51	-0.31	-0.53		-0.43	-0.31	0.11	-0.59	-0.4
Long Term Debt	0.68	0.25	0.68	0.0	-0.36	0.0	-0.23	0.45	-0.37	0.73	0.43	0.68	0.03	0.45	0.52	0.48	0.12	0.51	0.47	0.64	-0.43		0.7	-0.34	0.73	0.62
Net Receivables	0.97	0.79	0.79	0.13	-0.53	0.13	-0.16	0.85	-0.44	0.91	0.83	0.78	0.6	0.83	0.86	0.77	-0.36	0.88	0.83	0.91	-0.31	0.7		-0.52	0.84	0.86
Common Stock Total Equity	-0.56	-0.56	-0.29	-0.34	1.0	-0.34	-0.58	-0.64	0.14	-0.49	-0.66	-0.27	-0.27	-0.64	-0.47	-0.37	-0.06	-0.51	-0.67	-0.43	0.11	-0.34	-0.52		-0.33	-0.42
Non Current Liabilities Total	0.92	0.41	0.98	0.07	-0.35	0.07	-0.49	0.56	-0.78	0.98	0.56	0.99	0.53	0.68	0.59	0.94	-0.44	0.87	0.63	0.97	-0.59	0.73	0.84	-0.33		0.86
Other Current Assets	0.9	0.61	0.8	0.24	-0.45	0.24	-0.29	0.67	-0.65	0.89	0.69	0.83	0.7	0.73	0.63	0.82	-0.47	0.9	0.7	0.88	-0.4	0.62	0.86	-0.42	0.86

Click cells to compare fundamentals

Advance Auto Account Relationship Matchups

Advance Auto fundamental ratios Accounts

	2019	2020	2021	2022	2023	2024 (projected)
Total Assets	11.2B	11.8B	12.2B	12.0B	13.0B	13.7B
Total Stockholder Equity	3.5B	3.6B	3.1B	2.7B	2.5B	1.8B
Net Debt	2.3B	2.2B	2.8B	3.4B	3.9B	4.1B
Cash	418.7M	835.0M	601.4M	269.3M	503.5M	279.7M
Other Assets	52.4M	52.3M	73.7M	62.4M	1.0	0.95
Cash And Short Term Investments	418.7M	835.0M	601.4M	269.3M	503.5M	279.7M
Common Stock Shares Outstanding	71.2M	69.0M	64.5M	60.7M	59.6M	66.6M
Liabilities And Stockholders Equity	11.2B	11.8B	12.2B	12.0B	13.0B	13.7B
Inventory	4.4B	4.5B	4.7B	4.9B	4.9B	2.9B
Other Stockholder Equity	(189.2M)	(610.4M)	(1.5B)	(2.0B)	(2.0B)	(1.9B)
Total Liab	7.7B	8.3B	9.1B	9.3B	10.5B	11.0B
Total Current Assets	5.7B	6.3B	6.3B	6.0B	6.4B	3.6B
Short Long Term Debt Total	2.8B	3.0B	3.4B	3.7B	4.4B	4.7B
Other Current Liab	1.1B	1.1B	1.3B	645.9M	565.6M	338.0M
Total Current Liabilities	4.5B	4.7B	5.2B	5.4B	5.3B	2.9B
Other Liab	457.3M	488.7M	513.6M	503.2M	578.7M	607.6M
Property Plant And Equipment Net	3.8B	3.8B	4.2B	4.3B	4.2B	4.4B
Current Deferred Revenue	(478.0M)	(462.6M)	(465.1M)	416.0M	118.8M	181.5M
Retained Earnings	3.8B	4.2B	4.6B	4.7B	4.6B	4.8B
Accounts Payable	3.4B	3.6B	3.9B	4.1B	4.2B	2.2B
Non Current Assets Total	5.6B	5.6B	5.9B	6.0B	6.6B	7.0B
Non Currrent Assets Other	52.4M	52.3M	73.7M	(353.6M)	(143.9M)	(136.7M)
Long Term Debt	747.3M	1.0B	1.0B	1.2B	1.8B	1.9B
Net Receivables	689.5M	750.0M	782.8M	698.6M	800.1M	840.1M
Non Current Liabilities Total	3.2B	3.5B	3.9B	4.0B	5.2B	5.4B
Other Current Assets	155.2M	146.8M	232.2M	163.7M	215.7M	226.5M
Property Plant And Equipment Gross	3.8B	3.8B	1.5B	4.3B	7.1B	7.4B
Accumulated Other Comprehensive Income	(34.6M)	(26.8M)	(22.6M)	(45.1M)	(52.2M)	(49.6M)
Short Term Debt	478.0M	462.6M	465.1M	185M	445.1M	467.3M
Property Plant Equipment	1.4B	1.5B	1.5B	4.3B	4.9B	5.2B
Treasury Stock	(426.0M)	(924.4M)	(1.4B)	(2.3B)	(2.1B)	(2.0B)
Good Will	992.2M	993.6M	993.7M	990.5M	991.7M	608.6M
Intangible Assets	709.8M	681.1M	651.2M	620.9M	593.3M	393.2M
Net Tangible Assets	3.9B	4.9B	2.5B	1.1B	1.2B	2.0B
Retained Earnings Total Equity	3.3B	3.8B	4.2B	4.6B	5.3B	2.7B
Long Term Debt Total	747.3M	1.0B	1.0B	1.2B	1.4B	1.0B
Capital Surpluse	735.2M	783.7M	845.4M	897.6M	1.0B	723.8M
Deferred Long Term Liab	303.6M	318.4M	334.0M	342.4M	393.8M	218.7M

Pair Trading with Advance Auto

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Advance Auto position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Advance Auto will appreciate offsetting losses from the drop in the long position's value.

Moving together with Advance Stock

0.9

AutoNation Earnings Call This Week

Pair Corr

Moving against Advance Stock

0.73	FNKO	Funko Inc Financial Report 2nd of May 2024	Pair Corr
0.7	DXLG	Destination XL Group Financial Report 23rd of May 2024	Pair Corr
0.66	GCO	Genesco Financial Report 23rd of May 2024	Pair Corr
0.56	BIG	Big Lots Downward Rally	Pair Corr
0.52	SBH	Sally Beauty Holdings Financial Report 2nd of May 2024	Pair Corr

The ability to find closely correlated positions to Advance Auto could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Advance Auto when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Advance Auto - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Advance Auto Parts to buy it.

The correlation of Advance Auto is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Advance Auto moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Advance Auto Parts moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Correlation analysis and pair trading evaluation for Advance Auto can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.

Pair Correlation Correlation Matching

When determining whether Advance Auto Parts is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Advance Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Advance Auto Parts Stock. Highlighted below are key reports to facilitate an investment decision about Advance Auto Parts Stock:

How To Invest In Advance

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Is Advance Stock a good investment?

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What is Advance Auto's Net Worth?

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Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Advance Auto Parts. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.

Note that the Advance Auto Parts information on this page should be used as a complementary analysis to other Advance Auto's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

Complementary Tools for Advance Stock analysis

When running Advance Auto's price analysis, check to measure Advance Auto's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Advance Auto is operating at the current time. Most of Advance Auto's value examination focuses on studying past and present price action to predict the probability of Advance Auto's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Advance Auto's price. Additionally, you may evaluate how the addition of Advance Auto to your portfolios can decrease your overall portfolio volatility.

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Is Advance Auto's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Advance Auto. If investors know Advance will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Advance Auto listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

Quarterly Earnings Growth

(0.40)

Dividend Share

2.25

Earnings Share

0.5

Revenue Per Share

189.925

Quarterly Revenue Growth

(0)

The market value of Advance Auto Parts is measured differently than its book value, which is the value of Advance that is recorded on the company's balance sheet. Investors also form their own opinion of Advance Auto's value that differs from its market value or its book value, called intrinsic value, which is Advance Auto's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Advance Auto's market value can be influenced by many factors that don't directly affect Advance Auto's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

Please note, there is a significant difference between Advance Auto's value and its price as these two are different measures arrived at by different means. Investors typically determine if Advance Auto is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Advance Auto's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

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Advance Operating Income vs Net Income Analysis

Operating Income vs Net Income

Operating Income vs Net Income Correlation Analysis

Correlation Coefficient

Operating Income

Net Income

Advance Auto fundamental ratios Correlations

Advance Auto Account Relationship Matchups

High Positive Relationship

High Negative Relationship

Advance Auto fundamental ratios Accounts

Pair Trading with Advance Auto

Moving together with Advance Stock

Moving against Advance Stock

Complementary Tools for Advance Stock analysis

COMMON DESTINATIONS

MAIN CATEGORIES

COMPANY

Cash And Short Term Investments	+ 1.0	Cash
Common Stock Total Equity	+ 1.0	Other Assets
Non Current Assets Total	+ 0.99	Total Liab
Non Current Liabilities Total	+ 0.99	Short Long Term Debt Total
Accounts Payable	+ 0.99	Total Current Liabilities
Total Liab	+ 0.98	Total Assets

Current Deferred Revenue	- 0.85	Other Current Liab
Other Stockholder Equity	- 0.82	Net Debt
Property Plant And Equipment Net	- 0.81	Other Stockholder Equity
Short Long Term Debt Total	- 0.81	Other Stockholder Equity
Non Current Liabilities Total	- 0.78	Other Stockholder Equity
Retained Earnings	- 0.73	Other Stockholder Equity