Advance Auto Parts Inc (AAP)
Working capital 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 current assets | US$ in thousands | 6,143,540 | 6,377,020 | 6,014,820 | 6,275,480 | 6,270,000 |
| Total current liabilities | US$ in thousands | 4,665,360 | 5,307,400 | 5,420,850 | 5,180,310 | 4,743,920 |
| Working capital turnover | 6.15 | 10.55 | 18.78 | 10.04 | 6.62 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $9,094,330K ÷ ($6,143,540K – $4,665,360K)
= 6.15
The working capital turnover of Advance Auto Parts Inc has shown significant fluctuations over the past five years. In December 2020, the company's working capital turnover was 6.62, indicating that it generated $6.62 in sales for every dollar of working capital invested. This ratio increased notably to 10.04 by December 2021, suggesting improved efficiency in utilizing its working capital.
The trend continued to rise in December 2022, reaching a high of 18.78, which reflects a substantial enhancement in the company's ability to generate sales from its working capital. However, in December 2023, the working capital turnover slightly decreased to 10.55, still indicating a good level of efficiency in utilizing working capital.
By December 2024, the working capital turnover declined to 6.15, dropping back to a level similar to that of 2020. This decrease may imply a reduction in the efficiency of converting working capital into sales compared to the peak in 2022. Overall, while there were fluctuations, Advance Auto Parts Inc generally displayed a strong ability to generate sales relative to its working capital over the period analyzed.
Peer comparison
Dec 31, 2024