Advance Auto Parts Inc (AAP)
Cash ratio
| Dec 31, 2023 | Oct 7, 2023 | Jul 15, 2023 | Apr 22, 2023 | Dec 31, 2022 | Oct 8, 2022 | Apr 23, 2022 | Dec 31, 2021 | Oct 9, 2021 | Jul 17, 2021 | Apr 24, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jul 11, 2020 | Apr 18, 2020 | Dec 31, 2019 | Oct 5, 2019 | Jul 13, 2019 | Apr 20, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 503,471 | 316,554 | 275,226 | 223,880 | 270,805 | 191,204 | 138,733 | 601,428 | 604,645 | 809,287 | 880,233 | 834,992 | 1,068,200 | 1,141,500 | 1,279,840 | 418,665 | 573,726 | 747,719 | 537,330 | 896,527 |
| Short-term investments | US$ in thousands | — | 974 | 1,838 | 2,619 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 5,307,400 | 5,216,700 | 5,101,760 | 5,055,350 | 5,420,850 | 5,436,630 | 5,052,570 | 5,180,310 | 4,955,230 | 4,899,340 | 4,792,420 | 4,743,920 | 4,648,890 | 4,437,560 | 4,831,050 | 4,477,700 | 4,463,910 | 4,372,400 | 4,298,880 | 3,885,950 |
| Cash ratio | 0.09 | 0.06 | 0.05 | 0.04 | 0.05 | 0.04 | 0.03 | 0.12 | 0.12 | 0.17 | 0.18 | 0.18 | 0.23 | 0.26 | 0.26 | 0.09 | 0.13 | 0.17 | 0.12 | 0.23 |
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 of Advance Auto Parts Inc has shown fluctuations over the periods under consideration. The cash ratio represents the proportion of cash and cash equivalents to current liabilities, indicating the company's ability to cover its short-term obligations solely with its readily available cash resources.
From December 31, 2018, to April 24, 2023, the cash ratio generally ranged between 0.03 and 0.26, with the lowest value recorded on April 23, 2022, and the highest on April 18, 2020. The ratio peaked at 0.26 on several occasions, indicating a strong ability to cover short-term liabilities with cash holdings.
While the cash ratio has fluctuated, it remained relatively stable above 0.05 during the later periods, implying that Advance Auto Parts Inc maintained a healthy cash position relative to its current liabilities. The ratio hit a low of 0.03 on April 23, 2022, which may indicate a temporary liquidity strain.
Overall, the trend in Advance Auto Parts Inc's cash ratio suggests that the company has generally managed its cash resources prudently to meet its short-term obligations, with variations reflecting different operating and financial conditions over the analyzed periods.
Peer comparison
Dec 31, 2023