AAP (Advance Auto Parts) Effective Interest Rate on Debt %: 4.98% (As of Mar. 2026)


AAP Advance Auto Parts Inc AAP
69 GF Score
Price $57.94
GF Value $52.12
Valuation Modestly Overvalued
! 5 Warning Signs
View Full Analysis

What is Advance Auto Parts Effective Interest Rate on Debt %?

Advance Auto Parts AAP +5.71% 69 Effective Interest Rate on Debt % is 4.98% as of Mar. 2026. GuruFocus rates AAP with a GF Score™ of 69/100 and a GF Value™ of $52.12 (Modestly Overvalued). The stock has 5 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Advance Auto Parts's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was $260 Mil. Advance Auto Parts's average total debt for the quarter that ended in Mar. 2026 was $5,226 Mil. Therefore, Advance Auto Parts's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 4.98%.


Advance Auto Parts  (NYSE:AAP) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Advance Auto Parts Effective Interest Rate on Debt % Related Terms


Advance Auto Parts Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Advance Auto Parts's Effective Interest Rate on Debt % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Advance Auto Parts Effective Interest Rate on Debt % Chart

Advance Auto Parts Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.18 1.45 2.35 2.16 3.12

Advance Auto Parts Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.94 2.08 3.59 4.04 4.98

AAP vs DORM, ATMU, DAN: Effective Interest Rate on Debt % Comparison

For the Auto Parts subindustry, Advance Auto Parts's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Advance Auto Parts Effective Interest Rate on Debt % vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Advance Auto Parts's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Advance Auto Parts's Effective Interest Rate on Debt % falls into.


AAP
69GF Score
Advance Auto Parts Inc AAP
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Advance Auto Parts Effective Interest Rate on Debt % Calculation

Advance Auto Parts's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Dec. 2024 )+Total Debt  (A: Dec. 2025 ))/ count )
=-1  *  -139/( (3686+5224)/ 2 )
=-1  *  -139/4455
=3.12 %

where

Advance Auto Parts's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2025 )+Total Debt  (Q: Mar. 2026 ))/ count )
=-1  *  -260/( (5224+5227)/ 2 )
=-1  *  -260/5225.5
=4.98 %

where

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 4.98% mean?
Advance Auto Parts (AAP) has a Effective Interest Rate on Debt % of 4.98% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Advance Auto Parts and its competitors.
Is Advance Auto Parts' Effective Interest Rate on Debt % too high?
Advance Auto Parts' current Effective Interest Rate on Debt % is 4.98%. Overall, Advance Auto Parts has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Advance Auto Parts' Effective Interest Rate on Debt % compare to DORM and ATMU?
Advance Auto Parts' Effective Interest Rate on Debt % of 4.98% can be compared against companies in the Vehicles & Parts industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Vehicles & Parts company?
A good Effective Interest Rate on Debt % depends on the Vehicles & Parts industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Advance Auto Parts and its competitors. Advance Auto Parts's current Effective Interest Rate on Debt % is 4.98%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advance Auto Parts stock overvalued right now?
Based on GuruFocus' analysis, Advance Auto Parts (AAP) is currently considered Modestly Overvalued. The stock's GF Value™ is $52.12, compared to a current price of $57.94 — trading 11.2% above its estimated fair value. The current Effective Interest Rate on Debt % is 4.98%. Advance Auto Parts' overall GF Score™ is 69/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Advance Auto Parts (AAP), the current Effective Interest Rate on Debt % is 4.98% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Advance Auto Parts (AAP) Overvalued in 2026?

Based on GuruFocus' analysis, Advance Auto Parts stock appears to be overvalued. The current stock price of $57.94 is trading 11.2% above its estimated GF Value™ of $52.12. GuruFocus considers Advance Auto Parts to be Modestly Overvalued.

Key valuation signals for AAP:

  • Effective Interest Rate on Debt %: 4.98%
  • GF Value™: $52.12 vs. price of $57.94 (11.2% above fair value)
  • GF Score™: 69/100 with 5 warning signs

No single metric tells the full story. See the AAP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Advance Auto Parts Business Description

Address 4200 Six Forks Road, Raleigh, NC, USA, 27609
Advance Auto Parts is a leading auto-parts retailer in North America with more than 4,000 store and branch locations. About half of the firm's sales are geared toward the professional channel, with the remaining sales in the do-it-yourself market. Through its vast store footprint and distribution network, Advance manages thousands of stock-keeping units for various vehicle makes and models. The retailer primarily competes on inventory availability and service speed, making the operating efficiency of its hub-and-spoke distribution model critical to meeting customer needs.
69GF Score

Get the complete analysis for AAP

Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$57.94
Price
$52.12
GF Value