Business Analysis of Advance Auto Parts

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Advance Auto Parts

ADVANCE AUTO PARTS

Business Overview

Advance Auto Parts, Inc. provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. The company offers batteries and battery accessories, belts and hoses, brakes and brake pads, chassis and climate control parts, clutches and drive shafts, engines and engine parts, exhaust systems and parts, hub assemblies, ignition components and wired, radiators and cooling parts, starters and alternators, and steering and alignment parts. It also offers AC chemicals and accessories, air fresheners, antifreeze and washer fluids, electrical wires and fuses, electronics, hand and specialty tools, lighting products, performance parts, sealants, adhesives and compounds, tire repair accessories, vent shades, mirrors and exterior accessories, washes, waxes and cleaning supplies, and wiper blades, as well as floor mats, seat covers, and interior accessories. In addition, the company offers air filters, fuel and oil additives, fuel filters, grease and lubricants, motor oils, oil filters, part cleaners and treatments, and transmission fluids for engine maintenance. Further, it offers battery and wiper installation, battery charging, check engine light reading, video clinic, oil and battery recycling, loaner tool program, and electrical system testing services. Additionally, the company sells its products online through AdvanceAutoParts.com and Worldpac.com. It serves do-it-for-me and do-it-yourself customers, as well as independently-owned operators. As of December 31, 2016, the company operated 5,062 stores and 127 WORLDPAC branches; and served approximately 1,250 independently owned Carquest branded stores in the United States, Puerto Rico, the U.S. Virgin Islands, and Canada, as well as Mexico and the Bahamas, Turks and Caicos, the British Virgin Islands, and the Pacific Islands. Advance Auto Parts, Inc. was founded in 1929 and is headquartered in Roanoke, Virginia.

Advance Auto Parts

Advance Auto Parts


R&P Rank: 302
Sector: Automobiles and Parts
Industry:Auto Parts
H.Q Location:Virginia
Website: www.advanceautoparts.com
Company Address:
5008 AIRPORT RD, ROANOKE VA 24012
Ph:540-362-4911

Business Analysis of Advance Auto Parts

The Automobiles and Parts Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Advance Auto Parts compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Advance Auto Parts to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Advance Auto Parts with an interactive chart.

  1. Revenue Growth: Advance Auto Parts reported a revenue growth of -1.7% year-on-year during 2016. Auto Parts Industry grew at 1.1% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Advance Auto Parts spent 55.5% of its total revenues on COGS. Auto Parts industry average (COGS share of revenue) in the same period was 74.6%
  3. R&D share of Revenues: Advance Auto Parts R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Advance Auto Parts spent 36.3% of its total revenues on Sales, Marketing, and General Administration (SG&A). Auto Parts industry average SG&A spending in the same period was 13.9%
  5. Inventory share of Revenues: As a percentage of revenue, Advance Auto Parts spent 45.2% of its total revenues on Inventories. Auto Parts industry average Inventory spending in the same period was 14.7%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Advance Auto Parts invested 32.3% of its total revenues on Accounts Payable (A/P) Auto Parts industry average Accounts Payable investment in the same period was 17.5%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Advance Auto Parts invested 6.7% of its total revenues on Accounts Receivable (A/R). Auto Parts industry average Accounts Receivable investment in the same period was 12.8%
  8. PP&E share of Revenues: As a percentage of revenue, Advance Auto Parts invested 15.1% of its total revenues on Property, Plants, and Equipments (PP&E). Auto Parts industry average PPE investment in the same period was 21.0%
  9. Intangibles share of Revenues: As a percentage of revenue, Advance Auto Parts invested 17.1% of its total revenues on Intangibles. Auto Parts industry average Intangibles investment in the same period was 14.2%
  10. Net Margins: Advance Auto Parts Net Margins in the year 2016 were 4.8%. Auto Parts industry average Net Margins in the same period were 5.3%

Sector and Industry Association of Advance Auto Parts

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Advance Auto Parts is associated with Industrials Sector Group, Automobiles and Parts Sector, and Auto Parts Industry.

Automobiles and Parts sector is comprised of the following industries: Automobiles; Auto Parts. The definitions for each of the industries is as follows:

  • Automobiles industry includes manufacturers of passenger vehicle that includes Cars, SUVs etc. and recreational vehicles including motorcycles like Harley Davidson. Companies making boats and other recreational vehicles are also part of Automobiles industry.
  • Auto Parts industry includes manufacturers and distributors of automobile parts including engines, batteries and also tires.

Industry Ranking of Advance Auto Parts

With $9.6 billion revenues, Advance Auto Parts ranked number 8 of all the companies in the US Auto Parts industry. There were a total of 38 public companies in the US Auto Parts industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Auto Parts industry by revenues during 2016 were:

  1. Lear ($18.6 billion)
  2. Adient ($16.8 billion)
  3. Delphi Automotive ($16.7 billion)
  4. Genuine Parts ($15.3 billion)
  5. Goodyear Tire & Rubber ($15.2 billion)
  6. AutoZone ($10.6 billion)
  7. Autoliv ($10.1 billion)
  8. Advance Auto Parts ($9.6 billion)
  9. BorgWarner ($9.1 billion)
  10. Tenneco ($8.6 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Advance Auto Partsand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of advance-auto-parts

Goodyear Tire & Rubber (GT) Business Analysis – Analyze Historical Performance,...

Goodyear Tire & Rubber Co with $15 billion revenues in the year 2016 was the number 5 Auto Parts company. Read this report to know the top competitors of Goodyear Tire & Rubber and identify growth and cost optimization opportunities of Goodyear Tire & Rubber

AutoZone (AZO) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

AutoZone Inc with $11 billion revenues in the year 2016 was the number 6 Auto Parts company. Read this report to know the top competitors of AutoZone and identify growth and cost optimization opportunities of AutoZone

Autoliv (ALV) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Autoliv Inc with $10 billion revenues in the year 2016 was the number 7 Auto Parts company. Read this report to know the top competitors of Autoliv and identify growth and cost optimization opportunities of Autoliv

BorgWarner (BWA) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Borgwarner Inc with $9 billion revenues in the year 2016 was the number 9 Auto Parts company. Read this report to know the top competitors of BorgWarner and identify growth and cost optimization opportunities of BorgWarner

Tenneco (TEN) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Tenneco Inc with $9 billion revenues in the year 2016 was the number 10 Auto Parts company. Read this report to know the top competitors of Tenneco and identify growth and cost optimization opportunities of Tenneco

O’Reilly Automotive (ORLY) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

O'Reilly Automotive Inc with $9 billion revenues in the year 2016 was the number 11 Auto Parts company. Read this report to know the top competitors of O'Reilly Automotive and identify growth and cost optimization opportunities of O'Reilly Automotive

Revenues Analysis

Advance Auto Parts (AAP) Revenues And Revenue Growth From 2012 To...

This report provides the last five years revenues and revenue growth of Advance Auto Parts Inc (AAP) from 2012 to 2016. Advance Auto Parts generated a total of $9.6 billion revenues during 2016. Advance Auto Parts reported a revenue growth of -1.7% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in January.

Advance Auto Parts (AAP) Revenues And Revenue Growth From 2002 To...

This report provides the last fifteen years revenues and revenue growth of Advance Auto Parts Inc (AAP) from 2002 to 2016. Advance Auto Parts generated a total of $9.6 billion revenues during 2016. Advance Auto Parts reported a revenue growth of -1.7% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in January.

Advance Auto Parts (AAP) Revenue Growth Comparison With Industry Growth From...

This report provides a comparison of Advance Auto Parts Inc (AAP) revenue growth with Auto Parts industry growth during the last five years from 2012 to 2016. Advance Auto Parts reported a revenue growth of -1.7% year-over-year during 2016. The Auto Parts industry growth was 1.1% year-over-year during 2016. Advance Auto Parts growth was slower than the industry during 2016.

Profit Analysis

Advance Auto Parts (AAP) Net Profit And Net Margin From 2012...

This report provides the last five years net profit and net margin of Advance Auto Parts Inc (AAP) from 2012 to 2016. Advance Auto Parts reported a total net income of $459.6 million during 2016. Advance Auto Parts generated a total of $9.6 billion revenues during 2016. Advance Auto Parts net profit margin was 4.8% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in January.