Advance Auto Parts Inc (AAP)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 9,094,330 | 11,287,600 | 11,154,700 | 10,998,000 | 10,106,300 |
| Property, plant and equipment | US$ in thousands | — | — | 4,297,830 | 1,528,310 | 1,462,600 |
| Fixed asset turnover | — | — | 2.60 | 7.20 | 6.91 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $9,094,330K ÷ $—K
= —
Fixed asset turnover is a key financial ratio that measures the efficiency of a company in generating sales revenue from its investment in fixed assets. Advance Auto Parts Inc's fixed asset turnover has shown a positive trend over the years, increasing from 6.91 in December 31, 2020, to 7.20 in December 31, 2021, indicating that the company is generating more sales revenue per dollar invested in fixed assets.
However, there was a significant decrease in fixed asset turnover to 2.60 in December 31, 2022, which may raise concerns about the company's ability to efficiently utilize its fixed assets to generate sales. The lack of data for December 31, 2023, and December 31, 2024, prevents a comprehensive analysis of the trend.
Overall, while the company has shown strong efficiency in generating sales from fixed assets in the past, the significant drop in fixed asset turnover in 2022 warrants further investigation to understand the underlying reasons and assess the company's asset utilization efficiency.
Peer comparison
Dec 31, 2024