Advance Auto Parts Inc (AAP)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 503,471 | 270,805 | 601,428 | 834,992 | 418,665 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 5,307,400 | 5,420,850 | 5,180,310 | 4,743,920 | 4,477,700 |
| Cash ratio | 0.09 | 0.05 | 0.12 | 0.18 | 0.09 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($503,471K
+ $—K)
÷ $5,307,400K
= 0.09
The cash ratio measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. Advance Auto Parts Inc's cash ratio has fluctuated over the past five years. As of December 31, 2023, the cash ratio stood at 0.09, indicating that the company had $0.09 in cash and cash equivalents for every $1 of current liabilities.
Compared to the previous years, the cash ratio was lower in 2023. This suggests that Advance Auto Parts Inc may have a relatively lower level of cash available to cover its short-term obligations compared to the prior year.
It is essential for investors and analysts to monitor the cash ratio over time to assess the company's liquidity position and ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023