Advance Auto Parts Inc (AAP)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 14.10 | 16.29 | 14.05 | 13.40 | 14.08 | |
| DSO | days | 25.88 | 22.41 | 25.98 | 27.23 | 25.92 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 14.10
= 25.88
Over the past five years, Advance Auto Parts Inc's Days of Sales Outstanding (DSO) have shown some fluctuation. In 2023, the DSO was 25.88 days, slightly higher compared to the previous year's DSO of 22.41 days. This indicates that in 2023, on average, it took the company around 25.88 days to collect its accounts receivable.
While there was a slight increase in DSO in 2023, it is important to note that the DSO levels have been relatively consistent over the five-year period, ranging from 22.41 days to 27.23 days. Consistent or declining DSO levels year-over-year can indicate that the company is effectively managing its accounts receivable and collecting payments from customers in a timely manner.
Overall, the trend in Advance Auto Parts Inc's DSO over the past five years suggests that the company has been efficient in managing its accounts receivable, ensuring timely collection of payments from customers. It is important for the company to continue monitoring and managing its DSO to maintain healthy cash flows and working capital levels.
Peer comparison
Dec 31, 2023