Advance Auto Parts Inc (AAP)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | — | — | — | — | — | 12.45 | — | 15.38 | — | 15.28 | — | — | 13.38 | — | — | 12.28 | — | — | 11.31 | — | |
| DSO | days | — | — | — | — | — | 29.32 | — | 23.73 | — | 23.89 | — | — | 27.28 | — | — | 29.73 | — | — | 32.26 | — |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —
Days Sales Outstanding (DSO) is a measure that indicates the average number of days it takes for a company to collect revenue after a sale has been made. A lower DSO is generally preferable as it signifies that the company is collecting its accounts receivable more quickly.
Analyzing the DSO for Advance Auto Parts Inc based on the provided data reveals some fluctuations over the periods mentioned.
- In October 2021, the DSO was 32.26 days, indicating that it took Advance Auto Parts around 32 days to collect its accounts receivable.
- The DSO decreased to 29.73 days in April 2022 before further decreasing to 27.28 days in October 2022. These declines suggest that the company improved its collections process or had more efficient credit terms.
- Notably, in July 2023, the DSO dropped to 23.73 days, which is the lowest in the data set. This implies a significant improvement in the company's accounts receivable collections.
- The DSO increased slightly to 29.32 days in October 2023 but remained relatively stable compared to the previous years.
- The data also shows fluctuations of DSO figures with some periods showing "— days," indicating that the information might not be available or the company did not have any accounts receivable during those times.
Overall, the trend in DSO for Advance Auto Parts Inc suggests variations in the efficiency of its accounts receivable collection process. Understanding these fluctuations can provide insights into the company's credit policies, customer payment behaviors, and overall financial health.
Peer comparison
Dec 31, 2024