Advance Auto Parts Inc (AAP)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,685,810 | 6,764,100 | 6,192,620 | 6,069,240 | 5,624,710 |
| Inventory | US$ in thousands | 3,612,080 | 4,857,700 | 4,896,270 | 4,659,020 | 4,538,200 |
| Inventory turnover | 1.57 | 1.39 | 1.26 | 1.30 | 1.24 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,685,810K ÷ $3,612,080K
= 1.57
Advance Auto Parts Inc's inventory turnover has shown a gradual increase over the years, moving from 1.24 in December 31, 2020 to 1.57 in December 31, 2024. This indicates that the company is managing its inventory more efficiently. A higher inventory turnover ratio suggests that the company is selling its products more quickly relative to the amount of inventory it holds, which can lead to lower carrying costs and potential less risk of obsolescence. The improvement in inventory turnover ratio is a positive indicator of Advance Auto Parts Inc's operational efficiency and effective inventory management strategies over the years.
Peer comparison
Dec 31, 2024