Advance Auto Parts Inc (AAP)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 9,094,330 | 11,287,600 | 11,154,700 | 10,998,000 | 10,106,300 |
| Total assets | US$ in thousands | 10,798,100 | 12,276,300 | 11,986,400 | 12,194,200 | 11,839,600 |
| Total asset turnover | 0.84 | 0.92 | 0.93 | 0.90 | 0.85 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $9,094,330K ÷ $10,798,100K
= 0.84
Total asset turnover measures how efficiently a company is utilizing its total assets to generate revenue. In the case of Advance Auto Parts Inc, the total asset turnover has been trending upwards over the last five years. It increased from 0.85 in December 31, 2020, to 0.90 in December 31, 2021, and further to 0.93 in December 31, 2022. However, there was a slight decrease to 0.92 in December 31, 2023, followed by a drop to 0.84 in December 31, 2024.
This indicates that Advance Auto Parts Inc was able to generate $0.85 of revenue for every dollar of assets in 2020, and this ratio improved to $0.93 in 2022, highlighting better asset utilization. The slight decrease in 2023 and a more significant drop in 2024 may suggest challenges in efficiently utilizing assets to generate revenue. It would be essential for the company to identify the reasons behind this decline and take corrective actions to improve asset turnover efficiency in the future.
Peer comparison
Dec 31, 2024