Advance Auto Parts Inc (AAP)
Inventory turnover
| Dec 31, 2023 | Oct 7, 2023 | Jul 15, 2023 | Apr 22, 2023 | Dec 31, 2022 | Oct 8, 2022 | Apr 23, 2022 | Dec 31, 2021 | Oct 9, 2021 | Jul 17, 2021 | Apr 24, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jul 11, 2020 | Apr 18, 2020 | Dec 31, 2019 | Oct 5, 2019 | Jul 13, 2019 | Apr 20, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 11,217,160 | 10,989,760 | 10,697,600 | 11,319,540 | 10,274,250 | 10,348,500 | 10,282,870 | 10,190,370 | 10,119,660 | 10,012,850 | 9,847,000 | 9,388,220 | 9,163,500 | 9,018,160 | 8,941,090 | 9,065,730 | 9,145,140 | 9,128,200 | 9,127,040 | 9,065,700 |
| Inventory | US$ in thousands | 4,857,700 | 4,919,160 | 5,052,240 | 5,001,160 | 4,896,270 | 4,926,580 | 4,778,850 | 4,659,020 | 4,450,450 | 4,428,120 | 4,476,660 | 4,538,200 | 4,367,270 | 4,358,490 | 4,526,000 | 4,432,170 | 4,391,090 | 4,374,930 | 4,433,980 | 4,362,550 |
| Inventory turnover | 2.31 | 2.23 | 2.12 | 2.26 | 2.10 | 2.10 | 2.15 | 2.19 | 2.27 | 2.26 | 2.20 | 2.07 | 2.10 | 2.07 | 1.98 | 2.05 | 2.08 | 2.09 | 2.06 | 2.08 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $11,217,160K ÷ $4,857,700K
= 2.31
Inventory turnover is a key financial ratio that measures how many times a company's inventory is sold and replaced over a certain period. A higher inventory turnover generally indicates that the company is efficiently managing its inventory levels and quickly selling its products.
Analyzing the inventory turnover of Advance Auto Parts Inc over the past five years, we observe fluctuations in the ratio. The inventory turnover ratio ranged from 1.98 to 2.31 during this period. Generally, the company's inventory turnover has been stable, staying within the range of 2.07 to 2.31 over the last five years.
The variations in inventory turnover may reflect changes in sales trends, inventory management practices, or industry conditions. For Advance Auto Parts Inc, the ratio has generally been above 2, indicating a satisfactory level of efficiency in managing its inventory.
However, it is noteworthy that the trend has not shown a consistent increase or decrease over the years, suggesting the need for ongoing monitoring of inventory management practices. A consistent and stable inventory turnover ratio is essential for ensuring optimal performance and profitability in the automotive retail industry.
Peer comparison
Dec 31, 2023
Dec 31, 2023