Advance Auto Parts Inc (AAP)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 1.57 | 1.39 | 1.26 | 1.30 | 1.24 | |
| DOH | days | 231.88 | 262.13 | 288.59 | 280.19 | 294.49 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.57
= 231.88
Advance Auto Parts Inc's days of inventory on hand (DOH) has shown a declining trend over the past five years. In December 2020, the DOH was at 294.49 days, indicating that, on average, the company held inventory for almost a year. By December 2024, the DOH had decreased to 231.88 days, reflecting an improvement in inventory management efficiency.
The gradual decline in DOH suggests that Advance Auto Parts has been more effective in managing its inventory levels. A lower DOH typically indicates that the company is selling its inventory more quickly or reducing excess inventory, which can lead to lower carrying costs and potentially higher profit margins.
Overall, the decreasing trend in DOH for Advance Auto Parts Inc is a positive indicator of improved inventory management over the five-year period, potentially resulting in enhanced operational efficiency and profitability.
Peer comparison
Dec 31, 2024