Advance Auto Parts Inc (AAP)
Working capital 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 current assets | US$ in thousands | 6,377,020 | 6,014,820 | 6,275,480 | 6,270,000 | 5,695,540 |
| Total current liabilities | US$ in thousands | 5,307,400 | 5,420,850 | 5,180,310 | 4,743,920 | 4,477,700 |
| Working capital turnover | 10.55 | 18.76 | 10.04 | 6.59 | 7.97 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $11,284,200K ÷ ($6,377,020K – $5,307,400K)
= 10.55
The working capital turnover for Advance Auto Parts Inc has fluctuated over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate sales.
In 2023, the working capital turnover was 10.55, showing a decrease from the previous year's figure of 18.76. This decline suggests that the company may have been less effective in using its working capital to generate revenue compared to the prior period.
However, when compared to 2021 and 2020, the 2023 figure is still relatively higher, indicating an improvement in the efficiency of working capital utilization.
Overall, Advance Auto Parts Inc's working capital turnover has shown variability over the years, with fluctuations in efficiency in converting working capital into sales. A higher turnover ratio generally indicates better efficiency in working capital management.
Peer comparison
Dec 31, 2023