Advance Auto Parts Inc (AAP)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,284,200 | 11,142,900 | 10,996,300 | 10,051,400 | 9,707,300 |
| Total assets | US$ in thousands | 12,276,300 | 11,986,400 | 12,194,200 | 11,839,600 | 11,248,500 |
| Total asset turnover | 0.92 | 0.93 | 0.90 | 0.85 | 0.86 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $11,284,200K ÷ $12,276,300K
= 0.92
Advance Auto Parts Inc's total asset turnover has shown a steady performance over the past five years. The ratio has ranged from 0.85 in 2020 to 0.93 in 2022, with the latest figure standing at 0.92 in 2023. This indicates that, on average, the company generates approximately $0.92 in sales for every dollar of assets it owns. A total asset turnover below 1 suggests that the company is not as efficient in utilizing its assets to generate revenue. However, the consistency in the range of the ratio indicates stability in the company's asset management efficiency over the years. Further analysis of the company's operational efficiency and asset utilization strategies would provide deeper insights into its overall financial performance.
Peer comparison
Dec 31, 2023