Advance Auto Parts Inc (AAP)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Oct 7, 2023 | Jul 15, 2023 | Apr 22, 2023 | Dec 31, 2022 | Oct 8, 2022 | Apr 23, 2022 | Dec 31, 2021 | Oct 9, 2021 | Jul 17, 2021 | Apr 24, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jul 11, 2020 | Apr 18, 2020 | Dec 31, 2019 | Oct 5, 2019 | Jul 13, 2019 | Apr 20, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 2.31 | 2.23 | 2.12 | 2.26 | 2.10 | 2.10 | 2.15 | 2.19 | 2.27 | 2.26 | 2.20 | 2.07 | 2.10 | 2.07 | 1.98 | 2.05 | 2.08 | 2.09 | 2.06 | 2.08 | |
| DOH | days | 158.07 | 163.38 | 172.38 | 161.26 | 173.94 | 173.76 | 169.63 | 166.88 | 160.52 | 161.42 | 165.94 | 176.44 | 173.96 | 176.41 | 184.76 | 178.45 | 175.26 | 174.94 | 177.32 | 175.64 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.31
= 158.07
Days of Inventory on Hand (DOH) is a key financial ratio used to measure how efficiently a company manages its inventory. In the case of Advance Auto Parts Inc, the trend of DOH over the past few years fluctuates within a range, indicating some variability in inventory management.
Looking at the data, we see that the DOH for Advance Auto Parts Inc has ranged from a low of 158.07 days to a high of 184.76 days over the past five years. A higher DOH indicates that the company is taking longer to sell its inventory, which could tie up capital and lead to increased carrying costs.
The average DOH for Advance Auto Parts Inc over this period appears to be around 170 days, which suggests that the company holds onto its inventory for about 6 months on average before selling it. This figure can be compared to industry benchmarks to assess how effectively the company is managing its inventory levels.
It is important for Advance Auto Parts Inc to closely monitor its DOH and strive to optimize its inventory turnover to ensure efficient operations and maximize profitability. By analyzing this ratio over time, the company can identify trends, pinpoint areas for improvement, and make strategic decisions regarding inventory management.
Peer comparison
Dec 31, 2023