Advance Auto Parts Inc (AAP)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 2.31 | 2.14 | 2.19 | 2.07 | 2.05 | |
| DOH | days | 158.27 | 170.67 | 166.88 | 176.44 | 178.44 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.31
= 158.27
The days of inventory on hand (DOH) for Advance Auto Parts Inc have exhibited a fluctuating trend over the past five years. In 2023, the DOH decreased to 158.27 days from 170.67 days in 2022, showing an improvement in the management of inventory levels. This reduction in DOH suggests that the company is more efficient in managing its inventory and turning it into sales within a shorter period.
Comparing the DOH of 2023 to earlier years, there is a clear downward trend from 2020 to 2023, indicating a consistent effort by the company to optimize its inventory management processes. This trend suggests that Advance Auto Parts Inc has been successful in controlling its inventory levels and achieving a better balance between supply and demand.
Although there was a slight increase in DOH in 2021 compared to 2020, overall, the company has shown improvement in managing its inventory over the years. The decreasing trend in DOH indicates that Advance Auto Parts Inc has been able to streamline its operations and reduce the time it takes to convert inventory into sales, which is a positive signal for the company's overall efficiency and profitability.
Peer comparison
Dec 31, 2023