Advance Return On Equity from 2010 to 2024
| AAP Stock | USD 40.79 2.10 5.43% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.16 | Current Value 0.14 | Quarterly Volatility 0.07649679 |
Check Advance Auto financial statements over time to gain insight into future company performance. You can evaluate financial statements to find patterns among Advance Auto's main balance sheet or income statement drivers, such as Depreciation And Amortization of 198 M, Interest Expense of 92.5 M or Selling General Administrative of 2.6 B, as well as many indicators such as Price To Sales Ratio of 0.7, Dividend Yield of 0.0358 or PTB Ratio of 4.85. Advance financial statements analysis is a perfect complement when working with Advance Auto Valuation or Volatility modules.
Advance | Return On Equity |
Latest Advance Auto's Return On Equity Growth Pattern
Below is the plot of the Return On Equity of Advance Auto Parts over the last few years. Return on Equity is the amount of Advance Auto Parts net income returned as a percentage of Advance Auto equity. Return on equity measures Advance Auto profitability by revealing how much profit Advance Auto Parts generates with the money shareholders have invested. It is a measure of the profitability of a business in relation to the equity, calculated by dividing net income by shareholder's equity. Advance Auto's Return On Equity historical data analysis aims to capture in quantitative terms the overall pattern of either growth or decline in Advance Auto's overall financial position and show how it may be relating to other accounts over time.
| View | Last Reported -0.0046 | 10 Years Trend |
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Return On Equity |
| Timeline |
Advance Return On Equity Regression Statistics
| Arithmetic Mean | 0.21 | |
| Geometric Mean | 0.20 | |
| Coefficient Of Variation | 37.27 | |
| Mean Deviation | 0.04 | |
| Median | 0.19 | |
| Standard Deviation | 0.08 | |
| Sample Variance | 0.01 | |
| Range | 0.3255 | |
| R-Value | (0.56) | |
| Mean Square Error | 0 | |
| R-Squared | 0.32 | |
| Significance | 0.03 | |
| Slope | (0.01) | |
| Total Sum of Squares | 0.08 |
Advance Return On Equity History
About Advance Auto Financial Statements
Advance Auto shareholders use historical fundamental indicators, such as Return On Equity, to determine how well the company is positioned to perform in the future. Although Advance Auto investors may analyze each financial statement separately, they are all interrelated. The changes in Advance Auto's assets and liabilities, for example, are also reflected in the revenues and expenses on on Advance Auto's income statement. Understanding these patterns can help investors time the market effectively. Please read more on our fundamental analysis page.
| Last Reported | Projected for Next Year | ||
| Return On Equity | 0.16 | 0.14 |
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
Moving against Advance Stock
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.Additional 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.