Advance Auto Parts Inc (AAP)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 14.10 13.00 14.13 15.21 15.89 13.04 11.52 14.05 11.76 13.53 13.33 13.47 11.69 12.96 15.07 14.08 13.45 13.55 14.11 15.33
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
Working capital turnover 10.55 10.23 9.20 10.42 18.31 15.25 10.98 10.04 9.09 8.23 7.07 6.62 5.51 4.92 5.43 7.97 7.12 6.08 6.51 4.36

Advance Auto Parts Inc's inventory turnover ratio has been relatively stable over the past few years, hovering around 2.1 to 2.3 times. This indicates that the company is efficient in managing its inventory levels and turning over its inventory into sales.

The receivables turnover ratio shows a pattern of fluctuation but generally has been in the range of 11 to 16 times. This suggests that the company collects its accounts receivables in a timely manner, with a higher turnover ratio indicating faster collection of receivables.

The payables turnover ratio has also shown some variability, but has been consistently around 2.5 to 2.8 times. This indicates that the company is managing its payables effectively by paying its suppliers at a moderate pace.

The working capital turnover ratio has shown a decreasing trend over the years, indicating a decline in the efficiency of utilizing working capital to generate sales. However, the ratio has remained above 4 times, showing that the company is still able to generate sales efficiently relative to its working capital.

Overall, the activity ratios of Advance Auto Parts Inc suggest that the company is effectively managing its inventory, receivables, payables, and working capital to support its sales operations.

Average number of days

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
Days of inventory on hand (DOH) days 158.07 163.38 172.38 161.26 173.94 173.76 169.63 166.88 160.52 161.42 165.94 176.44 173.96 176.41 184.76 178.45 175.26 174.94 177.32 175.64
Days of sales outstanding (DSO) days 25.88 28.07 25.84 24.00 22.96 28.00 31.69 25.98 31.03 26.97 27.37 27.11 31.23 28.15 24.22 25.92 27.14 26.93 25.86 23.81
Number of days of payables days 135.95 133.32 131.79 121.08 148.46 143.93 139.94 140.48 135.29 138.79 138.55 141.54 140.50 133.97 134.89 137.77 135.80 132.67 131.05 127.74

Analyzing the activity ratios of Advance Auto Parts Inc, we can observe the following trends:

1. Days of Inventory on Hand (DOH): The company's average days of inventory on hand ranged from approximately 158 to 184 days over the past five years. There seems to be some fluctuation in inventory management efficiency, with the most recent data showing improvement compared to the previous periods.

2. Days of Sales Outstanding (DSO): Advance Auto Parts Inc's average days of sales outstanding ranged from about 22 to 31 days over the same period. The company has shown relatively consistent collection efficiency in terms of accounts receivable, with lower DSO values indicating faster collection of receivables.

3. Number of Days of Payables: The average number of days of payables ranged from around 121 to 148 days over the past five years. This indicates that the company takes, on average, around 121 to 148 days to pay its suppliers. The trend suggests a relatively stable payment period to suppliers.

Overall, Advance Auto Parts Inc has shown fluctuations in inventory management efficiency, stable collection efficiency, and consistent payment practices to suppliers over the past five years based on the activity ratios analyzed.

Long-term

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
Fixed asset turnover 6.84 6.79 6.64 7.02 6.43 6.63 7.04 7.20 7.39 7.39 7.33 6.91 6.82 6.70 6.55 6.77 6.98 7.00 7.09 7.00
Total asset turnover 0.92 0.92 0.91 0.98 0.91 0.91 0.92 0.90 0.92 0.92 0.90 0.85 0.82 0.81 0.78 0.86 0.87 0.86 0.87 1.06

Advance Auto Parts Inc's fixed asset turnover ratio has been relatively stable over the past five years, ranging between 6.43 and 7.39. This indicates that the company generates between $6.43 and $7.39 in sales for every dollar invested in fixed assets. The consistent high values of this ratio demonstrate efficient utilization of fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has shown some fluctuations, with values ranging from 0.78 to 1.06 over the same period. This ratio measures the company's ability to generate sales from its total assets, including current and non-current assets. The fluctuation in this ratio suggests varying levels of efficiency in generating sales from its total asset base.

Overall, the high fixed asset turnover and relatively stable total asset turnover ratios indicate that Advance Auto Parts Inc has been effectively managing both its fixed and total assets to drive sales and create value for its stakeholders.