Advance Auto Parts Inc (AAP)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Oct 7, 2023 | Sep 30, 2023 | Jul 15, 2023 | Jun 30, 2023 | Apr 22, 2023 | Mar 31, 2023 | Dec 31, 2022 | Oct 8, 2022 | Sep 30, 2022 | Jun 30, 2022 | Apr 23, 2022 | Mar 31, 2022 | Dec 31, 2021 | Oct 9, 2021 | Sep 30, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 1.78 | 1.56 | 1.60 | 1.66 | 1.77 | 1.75 | 1.85 | 1.86 | 1.62 | 1.83 | 1.45 | 1.39 | 1.75 | 1.62 | 1.63 | 1.84 | 1.47 | 1.63 | 1.73 | 1.89 | |
| DOH | days | 204.88 | 234.19 | 228.60 | 220.48 | 206.78 | 208.82 | 197.10 | 196.59 | 225.41 | 199.61 | 251.85 | 262.58 | 209.03 | 224.73 | 224.16 | 198.65 | 247.80 | 224.51 | 210.69 | 193.42 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.78
= 204.88
Advance Auto Parts Inc's days of inventory on hand (DOH) has shown fluctuations over the period from September 30, 2021, to December 31, 2024. The DOH ranged from a low of 193.42 days on September 30, 2021, to a high of 262.58 days on December 31, 2022.
It is essential to note that DOH measures how many days, on average, a company holds its inventory before selling it. A higher DOH may indicate slow-moving inventory or potential inefficiencies in inventory management, while a lower DOH may suggest efficient inventory turnover.
Advance Auto Parts Inc experienced a notable increase in DOH from March 31, 2022, reaching a peak of 262.58 days on December 31, 2022. This increase may suggest challenges in managing inventory levels, resulting in excess stock on hand compared to sales demand during this period.
Subsequently, there were fluctuations in the DOH, with values ranging between 196.59 and 234.19 days. The variations in DOH levels could be due to changes in sales volumes, inventory management practices, or market demand for Advance Auto Parts Inc's products.
Overall, it is crucial for Advance Auto Parts Inc to actively monitor and manage its inventory levels to achieve an optimal balance between having enough inventory to meet customer demand and avoiding excess inventory that ties up capital. Efforts to streamline inventory management processes and align inventory levels with sales trends could help improve operational efficiency and financial performance.
Peer comparison
Dec 31, 2024