Advance Auto Parts Inc (AAP)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 11,202,700 | 10,471,600 | 10,190,400 | 9,388,210 | 9,065,820 |
| Payables | US$ in thousands | 4,177,970 | 4,178,910 | 3,922,010 | 3,640,640 | 3,421,990 |
| Payables turnover | 2.68 | 2.51 | 2.60 | 2.58 | 2.65 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $11,202,700K ÷ $4,177,970K
= 2.68
The payables turnover ratio of Advance Auto Parts Inc has shown some fluctuation over the past five years. The ratio was 2.68 in 2023, which indicates that the company paid its suppliers approximately 2.68 times during the year. This represents an improvement compared to the prior year when the ratio was 2.51.
In 2021, the payables turnover was 2.60, slightly lower than in 2023 but higher than in 2020 when the ratio was 2.58. The trend in payables turnover suggests that Advance Auto Parts Inc has been managing its accounts payable effectively, maintaining a balance between paying its suppliers in a timely manner and managing its working capital efficiently.
Although there have been some fluctuations in the payables turnover ratio, the overall trend shows a relatively stable performance in managing the company's trade payables over the past five years. This indicates that Advance Auto Parts Inc has been able to effectively utilize its suppliers' credit terms while also meeting its payment obligations in a timely manner.
Peer comparison
Dec 31, 2023