Advance Auto Parts Inc (AAP)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,284,200 | 11,142,900 | 10,996,300 | 10,051,400 | 9,707,300 |
| Property, plant and equipment | US$ in thousands | 1,648,550 | 1,690,140 | 1,528,310 | 1,462,600 | 1,433,210 |
| Fixed asset turnover | 6.84 | 6.59 | 7.20 | 6.87 | 6.77 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $11,284,200K ÷ $1,648,550K
= 6.84
The fixed asset turnover ratio for Advance Auto Parts Inc has displayed some fluctuations over the past five years. The ratio indicates how efficiently the company is generating sales revenue from its investment in fixed assets.
In 2023, the fixed asset turnover ratio was 6.84, an increase from the previous year's ratio of 6.59 in 2022. This suggests that Advance Auto Parts Inc was able to generate $6.84 in sales for every dollar invested in fixed assets in 2023, showing a slightly improved efficiency in asset utilization compared to the previous year.
Looking back at the trend, the company's fixed asset turnover ratio was 7.20 in 2021, significantly higher than the ratios in 2022 and 2023. This indicates that in 2021, Advance Auto Parts Inc was very efficient in utilizing its fixed assets to generate sales revenue.
Despite the fluctuations, the company has generally maintained a relatively stable fixed asset turnover ratio in the range of 6.77 to 7.20 over the past five years. This suggests that Advance Auto Parts Inc has been consistently efficient in generating sales from its investment in fixed assets, demonstrating effective management of its asset base to drive revenue.
Overall, the analysis of the fixed asset turnover ratio indicates that Advance Auto Parts Inc has been successful in utilizing its fixed assets efficiently to support its sales operations.
Peer comparison
Dec 31, 2023