Advance Auto Parts Inc (AAP)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 6,434,920 | 6,300,040 | 7,829,430 | 7,993,110 | 8,574,430 | 8,598,400 | 9,165,720 | 9,380,230 | 8,205,460 | 9,144,780 | 7,269,470 | 6,806,050 | 8,602,760 | 8,001,510 | 7,864,880 | 8,780,600 | 7,038,940 | 7,574,560 | 7,709,860 | 8,398,570 |
| Inventory | US$ in thousands | 3,612,080 | 4,042,200 | 4,903,490 | 4,828,310 | 4,857,700 | 4,919,160 | 4,949,380 | 5,052,240 | 5,067,470 | 5,001,160 | 5,015,970 | 4,896,270 | 4,926,580 | 4,926,580 | 4,830,100 | 4,778,850 | 4,778,850 | 4,659,020 | 4,450,450 | 4,450,450 |
| Inventory turnover | 1.78 | 1.56 | 1.60 | 1.66 | 1.77 | 1.75 | 1.85 | 1.86 | 1.62 | 1.83 | 1.45 | 1.39 | 1.75 | 1.62 | 1.63 | 1.84 | 1.47 | 1.63 | 1.73 | 1.89 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $6,434,920K ÷ $3,612,080K
= 1.78
The inventory turnover ratio for Advance Auto Parts Inc has displayed some fluctuations over the reported periods. The data indicates that the company's inventory turnover was at 1.89 as of September 30, 2021, and gradually decreased to 1.47 by March 31, 2022. The ratio then showed some improvement, reaching 1.86 on July 15, 2023, before stabilizing around 1.60 to 1.78 in the subsequent periods.
Overall, the inventory turnover ratio for Advance Auto Parts Inc has remained relatively consistent, albeit with some minor fluctuations. It is important to note that a higher inventory turnover ratio is generally preferred as it signifies that the company is efficiently managing its inventory by quickly converting it into sales. However, a low inventory turnover ratio may indicate issues such as overstocking or slow-moving inventory that could impact the company's profitability and liquidity.
Peer comparison
Dec 31, 2024
Dec 31, 2024