Free cash flow remains consistently negative, evidenced by a $75 million cash burn in 2026Q1 and a volatile OCF/NI ratio that reached -6.50 in 2025Q1.
| Metric | TTM | Jan'26 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Cash from Operations | 91M | -46M | 84.63M | 287.38M | 736.57M | 1.11B | 969.69M | 866.91M | 811.03M | 600.8M | 523.3M | 702.64M | 708.99M | 545.25M | 685.28M | 828.85M | 666.16M | 699.69M | 478.74M | 410.54M | 333.6M | 321.63M | 260.4M | 355.92M | 243M | 103.54M | 103.95M | -20.98M | 44.02M |
| Operating CF Margin % | - | -0.53% | 0.93% | 3.12% | 8.05% | 10.07% | 9.59% | 8.93% | 8.47% | 6.41% | 5.47% | 7.22% | 7.2% | 8.4% | 11.04% | 13.43% | 11.24% | 12.93% | 9.31% | 8.47% | 7.23% | 7.54% | 6.91% | 10.19% | 7.58% | 4.28% | 4.54% | -1.04% | 3.61% |
| Operating CF Growth % | 127.75% | -154.35% | -70.55% | -60.98% | -33.46% | 14.16% | 11.86% | 6.89% | 34.99% | 14.81% | -25.52% | -0.9% | 30.03% | -20.43% | -17.32% | 24.42% | -4.79% | 46.15% | 16.61% | 23.06% | 3.72% | 23.52% | -26.84% | 46.47% | 134.7% | -0.4% | 595.57% | -147.65% | - |
| Net Income | 44M | 68M | -586.96M | -30.02M | 360.54M | 596.62M | 493.02M | 486.9M | 423.85M | 475.5M | 459.62M | 473.4M | 493.82M | 391.76M | 387.67M | 394.68M | 346.05M | 270.37M | 238.04M | 238.32M | 231.32M | 234.72M | 187.99M | 124.94M | 65.02M | 11.44M | 19.56M | 0 | 0 |
| Depreciation & Amortization | 329M | 272M | 291.98M | 269.43M | 248.33M | 259.93M | 250.08M | 238.37M | 238.18M | 249.26M | 258.39M | 269.48M | 284.69M | 207.79M | 189.54M | 175.95M | 164.44M | 150.92M | 146.58M | 147.5M | 139.96M | 120.56M | 105.96M | 105.85M | 110.7M | 97.56M | 80.73M | 0 | 0 |
| Stock-Based Compensation | 18M | 36M | 42.19M | 40.91M | 46.48M | 63.07M | 45.27M | 37.44M | 27.76M | 35.27M | 20.45M | 36.93M | 21.7M | 13.19M | 15.24M | 19.55M | 22.31M | 19.68M | 17.71M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -21M | -43M | -203.28M | -37.17M | 22.81M | 58.79M | 8.14M | 23.15M | 15.96M | -151.26M | 20.21M | -9.22M | 48.47M | -2.24M | 26.89M | 53.04M | 40.5M | 66.62M | -2.7M | -20.54M | -6.56M | 2.79M | 6.51M | 53.74M | 57.88M | -3.02M | 683K | 0 | 0 |
| Other Non-Cash Items | 73M | 103M | 140.23M | 149.71M | 126.27M | 964K | 54.22M | 19.11M | 18.15M | 20.23M | 3.96M | 15.54M | 5.42M | -13.04M | -18.82M | -3.34M | 380K | 6.12M | 31.03M | 17.32M | 17.77M | 31.17M | 27.92M | 59.59M | 16.17M | 20.07M | -1.19M | -20.98M | 44.02M |
| Working Capital Changes | -376M | -482M | 400.46M | -105.47M | -67.86M | 127.66M | 118.96M | 61.95M | 87.13M | -28.19M | -239.33M | -83.48M | -145.13M | -52.22M | 84.76M | 188.97M | 92.47M | 185.98M | 48.09M | 27.94M | -48.88M | -67.61M | -67.98M | 11.81M | -6.77M | -22.51M | 4.17M | 0 | 0 |
| Change in Receivables | 62M | 138M | 28.95M | -114.75M | 27.42M | -7.46M | -59.01M | -62.84M | -21.47M | 36.05M | -41.64M | -21.48M | -48.21M | -32.43M | -89.48M | -15.37M | -31.67M | 4.64M | -11.94M | 5.95M | -2.32M | 21.82M | -15.95M | 17.77M | -6.61M | 3.07M | 19.68M | 0 | 0 |
| Change in Inventory | -78M | -21M | 270.4M | -64.15M | -70.97M | -124.14M | -101.45M | -63.13M | -206.13M | 167.55M | -144.6M | -244.1M | -227.66M | -203.51M | -260.3M | -179.29M | -232M | -8.78M | -130.66M | -66.13M | -92.24M | -130.43M | -87.67M | -64.89M | -69.48M | 13.1M | -39.47M | 0 | 0 |
| Change in Payables | -405M | -469M | -110.11M | 57.52M | 119.33M | 291.04M | 216.49M | 245.78M | 285.49M | -197.17M | -119.33M | 119.16M | 216.41M | 113.5M | 376.63M | 360.68M | 325.84M | 174.94M | 102.36M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -324M | -239M | 1.35B | -235.49M | -424.45M | -287.31M | -266.9M | -462.94M | -191.83M | -178.64M | -262.04M | -253.37M | -2.29B | -362.11M | -272.98M | -289.97M | -199.35M | -185.54M | -181.61M | -202.14M | -258.64M | -302.78M | -166.82M | -85.47M | -78M | -451.01M | -64.94M | -113.82M | -230.67M |
| Capital Expenditures | -266M | -252M | -180.8M | -225.67M | -398.76M | -289.64M | -267.58M | -270.13M | -193.72M | -189.76M | -259.56M | -234.75M | -228.45M | -195.76M | -271.18M | -268.13M | -199.59M | -192.93M | -184.99M | -210.6M | -258.59M | -216.21M | -179.77M | -101.18M | -98.19M | -63.7M | -70.57M | 0 | 0 |
| CapEx % of Revenue | 3.08% | 2.93% | 1.99% | 2.45% | 4.36% | 2.63% | 2.65% | 2.78% | 2.02% | 2.02% | 2.71% | 2.41% | 2.32% | 3.01% | 4.37% | 4.35% | 3.37% | 3.56% | 3.6% | 4.35% | 5.6% | 5.07% | 4.77% | 2.9% | 3.06% | 2.63% | 3.08% | - | - |
| Acquisitions | 2M | 21M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -4.7M | -18.89M | -2.06B | -186.14M | -8.37M | -23.13M | 0 | 0 | 0 | 0 | -12.5M | -99.3M | 0 | 0 | -13.18M | -389.95M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -60M | -8M | 1.54B | -9.82M | -25.69M | 2.33M | 679K | -192.81M | 1.89M | 11.12M | 2.21M | 270K | 992K | 19.79M | 6.57M | 1.29M | 235K | 7.39M | 3.38M | 8.46M | 12.44M | 12.73M | 12.94M | 15.7M | 33.36M | 2.64M | 5.63M | -113.82M | -230.67M |
| Cash from Financing | 1.52B | 1.54B | -75.01M | 189.27M | -620.7M | -1.06B | -286M | -882.15M | -263.92M | -14.87M | -217.12M | -458.95M | 575.91M | 331.22M | 127.91M | -540.18M | -507.62M | -451.49M | -274.43M | -204.87M | -104.62M | -34.39M | -48.74M | -272.85M | -169.22M | 347.58M | -43.58M | 121.26M | 207.3M |
| Debt Issued (Net) | 1.6B | 1.6B | 0 | 414.57M | 332.54M | 0 | 244.52M | -369.39M | 32.01M | 14M | -165.57M | -426.32M | 599.62M | 445.68M | 177.44M | 121.63M | 98.79M | -263.25M | -59.58M | 48.8M | 29.62M | -27.53M | 119.1M | -263.95M | -266M | 363M | -50.32M | 0 | 0 |
| Equity Issued (Net) | 2M | 0 | -6.5M | -14.52M | -618.48M | -906.21M | -466.42M | -495.1M | -278.15M | -2.42M | -13.86M | -1.49M | -5.15M | -80.8M | -27.09M | -631.15M | -622.44M | -64.66M | -184.21M | -240.36M | -120.36M | -72.9M | -122.5M | 25.41M | 106.03M | 1.83M | 1.6M | 0 | 0 |
| Dividends Paid | -75M | -60M | -59.85M | -209.29M | -336.23M | -160.93M | -56.35M | -17.18M | -17.82M | -17.85M | -17.74M | -17.65M | -17.58M | -17.57M | -17.6M | -18.55M | -21.05M | -22.8M | -23.18M | -25.15M | -19.15M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 2M | 0 | -6.5M | -14.52M | -618.48M | -906.21M | -469.69M | -498.44M | -281.35M | -6.5M | -18.39M | -6.67M | -5.15M | -80.8M | -27.09M | -631.15M | -622.44M | -100.06M | -219.43M | -282.91M | -137.56M | -101.59M | -146.37M | 0 | 0 | -550K | 0 | 0 | 0 |
| Other Financing | -12M | -5M | -8.65M | -1.49M | 1.47M | 3.02M | -7.75M | -481K | 44K | -8.6M | 2.48M | -490K | -974K | -16.09M | -4.85M | -12.11M | 37.09M | -100.78M | -7.46M | 11.84M | 5.27M | 62.45M | -48.73M | -34.31M | -9.26M | -17.25M | 5.14M | 121.26M | 207.3M |
| Net Change in Cash | 1.28B | 1.25B | 1.37B | 232.67M | -317.25M | -238.93M | 416.33M | -477.86M | 349.59M | 411.76M | 44.4M | -13.89M | -1.01B | 514.36M | 540.21M | -1.31M | -40.81M | 62.66M | 22.7M | 3.53M | -29.66M | -15.54M | 44.83M | -2.4M | -4.23M | 108K | -4.57M | 0 | 0 |
| Free Cash Flow | -175M | -298M | -96.17M | 61.7M | 335.91M | 817.38M | 701.88M | 395.26M | 617.31M | 411.05M | 263.74M | 467.9M | 480.55M | 349.49M | 414.1M | 560.72M | 466.57M | 506.76M | 293.75M | 199.94M | 75.02M | 105.42M | 80.63M | 254.74M | 144.81M | 39.84M | 33.38M | -20.98M | 44.02M |
| FCF Margin % | -2.03% | -3.46% | -1.06% | 0.67% | 3.67% | 7.43% | 6.94% | 4.07% | 6.44% | 4.39% | 2.76% | 4.81% | 4.88% | 5.38% | 6.67% | 9.09% | 7.87% | 9.36% | 5.71% | 4.13% | 1.63% | 2.47% | 2.14% | 7.29% | 4.52% | 1.65% | 1.46% | -1.04% | 3.61% |
| FCF Growth % | 30.33% | -209.88% | -255.85% | -81.63% | -58.9% | 16.46% | 77.57% | -35.97% | 50.18% | 55.85% | -43.63% | -2.63% | 37.5% | -15.6% | -26.15% | 20.18% | -7.93% | 72.51% | 46.92% | 166.53% | -28.84% | 30.74% | -68.35% | 75.92% | 263.47% | 19.34% | 259.16% | -147.65% | - |
| FCF per Share | -2.87 | -4.92 | -1.61 | 1.04 | 5.53 | 12.67 | 10.17 | 5.55 | 8.34 | 5.55 | 3.57 | 6.35 | 6.55 | 4.76 | 5.59 | 7.28 | 5.35 | 5.33 | 3.09 | 1.91 | 0.70 | 0.96 | 0.71 | 2.27 | 1.33 | 0.46 | 0.39 | -0.25 | 0.79 |
| FCF Conversion (FCF/Net Income) | -3.98x | -1.05x | -0.25x | 9.58x | 1.59x | 1.86x | 1.97x | 1.78x | 1.91x | 1.26x | 1.14x | 1.48x | 1.44x | 1.39x | 1.77x | 2.10x | 1.93x | 2.59x | 2.01x | 1.72x | 1.44x | 1.37x | 1.39x | 2.85x | 3.74x | 9.05x | 5.31x | 0.83x | -20.18x |
| Interest Paid | 0 | 0 | 75.74M | 73.84M | 46.16M | 36.37M | 34.01M | 41.1M | 45.32M | 53.51M | 55.46M | 62.37M | 71.11M | 34.73M | 27.25M | 35.03M | 15.78M | 18.93M | 27.22M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 37.04M | 98.79M | 94.61M | 177.32M | 146.07M | 108.16M | 143.21M | 192.12M | 225.33M | 254.41M | 268.62M | 219.42M | 162.68M | 170.54M | 164.99M | 126.39M | 106.72M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Persistent negative free cash flow
According to the company's recent financial disclosures, the relationship between net income and operating cash flow is highly volatile, with the OCF/NI ratio frequently swinging into negative territory, such as the -6.50 multiple observed in 2025Q1, indicating significant underlying pressure on cash generation quality.
The frequent divergence between reported net income and operating cash flow suggests that accounting earnings are not translating into tangible liquidity. This disconnect implies that the company is struggling to manage its accruals effectively, likely due to the high costs associated with maintaining its complex inventory and distribution network.
As reported in quarterly filings, the company's free cash flow trajectory has been consistently negative over the last ten quarters, with a notable cash burn of $75 million in 2026Q1, highlighting a structural inability to fund operations and capital requirements through internal cash generation.
The persistent negative free cash flow margin suggests that the business model is currently consuming rather than creating value. Investors should monitor whether this trend is a temporary byproduct of restructuring or a permanent feature of the company's current competitive positioning in the aftermarket retail space.
Based on the provided cash flow data, working capital changes have been a significant drag on liquidity, with a massive $271 million outflow in 2025Q1 alone, reflecting the difficulty in balancing inventory levels against the company's fragmented and inefficient supply chain logistics.
The recurring negative impact of working capital changes suggests that the company is unable to optimize its inventory turnover or collection cycles. This inefficiency forces the firm to rely on external financing or cash reserves to cover operational gaps, further straining the balance sheet.
Data from recent financial statements reveals that capital expenditures remain elevated relative to revenue, with CapEx/Rev ratios reaching as high as 4.7% in 2025Q4, which appears disproportionate given the company's current inability to generate positive free cash flow from its existing store footprint.
The continued investment in capital projects during a period of margin compression warrants further investigation into the return on these assets. It appears that the company is forced to spend heavily on maintenance and infrastructure just to remain competitive, which limits the capital available for deleveraging or strategic pivots.
Quick answers to the most common questions about buying AAP stock.
Advance Auto Parts, Inc. (AAP) generated $-46.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Advance Auto Parts, Inc. (AAP) reported negative free cash flow of $298.0M in 2025, indicating capital requirements exceeded cash from operations.
Advance Auto Parts, Inc. (AAP) spent $252.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Advance Auto Parts, Inc. (AAP) returned $60.0M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.