Advance Auto Parts Inc (AAP)
Payables 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 |
| Payables | US$ in thousands | 4,177,970 | 4,014,010 | 3,862,680 | 3,755,000 | 4,178,910 | 4,080,830 | 3,942,390 | 3,922,010 | 3,750,840 | 3,807,290 | 3,737,850 | 3,640,640 | 3,527,320 | 3,310,070 | 3,304,210 | 3,421,990 | 3,402,540 | 3,317,970 | 3,276,960 | 3,172,790 |
| Payables turnover | 2.68 | 2.74 | 2.77 | 3.01 | 2.46 | 2.54 | 2.61 | 2.60 | 2.70 | 2.63 | 2.63 | 2.58 | 2.60 | 2.72 | 2.71 | 2.65 | 2.69 | 2.75 | 2.79 | 2.86 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $11,217,160K ÷ $4,177,970K
= 2.68
The payables turnover ratio for Advance Auto Parts Inc has fluctuated over the past years, ranging from 2.46 to 3.01. This ratio indicates the efficiency of the company in managing its accounts payable. A higher ratio implies that the company is paying its suppliers more frequently within a year, while a lower ratio suggests longer payment periods.
The average payables turnover for Advance Auto Parts Inc over the period is around 2.68, which indicates that, on average, the company pays its suppliers approximately 2.68 times a year. It is important to note that a stable or increasing trend in the payables turnover ratio may suggest that the company is effectively managing its working capital and maintaining good relationships with its suppliers.
Overall, the payables turnover ratio of Advance Auto Parts Inc reflects its ability to effectively manage its accounts payable, ensuring a balance between timely payments to suppliers and maintaining sufficient cash flow for operational needs.
Peer comparison
Dec 31, 2023