Advance Auto Parts, Inc.
AAP Consumer Cyclical Auto Parts
Advance Auto Parts, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $8.6 billion, down 5.42% from fiscal 2024. In the quarter to June 2026, revenue was flat, EPS grew 264.0%, free cash flow grew 9,650.0% and total debt rose 89.0%, each against the same quarter a year earlier. Dividend growth for three consecutive years.
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Advance Auto Parts, Inc. (AAP) Altman Z-score
Advance Auto Parts, Inc.'s Altman Z-score for fiscal 2025 is 1.67, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 1.67 | 0.14 |
| FY2024 | 1.52 | (0.08) |
| FY2023 | 1.61 | (0.47) |
| FY2022 | 2.08 | (0.70) |
| FY2021 | 2.78 | 0.28 |
| FY2020 | 2.50 | (0.05) |
| FY2019 | 2.55 | (0.81) |
| FY2018 | 3.36 | 0.40 |
| FY2017 | 2.96 | (0.52) |
| FY2016 | 3.48 | 0.26 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.26 | — | 0.32 | |
| Retained earnings / total assets | 0.35 | — | 0.49 | |
| EBIT / total assets | 0.00 | — | −0.01 | |
| Market value of equity / total liabilities | 0.24 | — | 0.15 | |
| Sales / total assets | 0.73 | — | 0.73 | |
| Altman Z-score | Distress zone | 1.67 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 3.09 | ||
Z and Z″ put Advance Auto Parts, Inc. in different zones: distress zone by Z, safe zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| GNTX Gentex Corporation compare | 9.3× |
| HSAI Hesai Group Sponsored ADR compare | 6.2× |
| ATMU Atmus Filtration Technologies Inc. compare | 5.6× |
| DORM Dorman Products, Inc. compare | 4.7× |
| VC Visteon Corporation compare | 3.8× |
| THRM Gentherm Inc compare | 3.3× |
| PHIN PHINIA Inc. compare | 2.1× |
| AAP Advance Auto Parts, Inc. | 1.7× |
| DAN Dana Incorporated compare | 1.4× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets