Advance Auto Parts Inc (AAP)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Oct 7, 2023 | Sep 30, 2023 | Jul 15, 2023 | Jun 30, 2023 | Apr 22, 2023 | Mar 31, 2023 | Dec 31, 2022 | Oct 8, 2022 | Sep 30, 2022 | Jun 30, 2022 | Apr 23, 2022 | Mar 31, 2022 | Dec 31, 2021 | Oct 9, 2021 | Sep 30, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,869,420 | 464,492 | 479,418 | 451,003 | 503,471 | 316,554 | 317,528 | 275,226 | 277,064 | 223,880 | 226,499 | 270,805 | 191,204 | 191,204 | 240,551 | 138,733 | 138,733 | 601,428 | 604,645 | 604,645 |
| Short-term investments | US$ in thousands | — | — | — | — | — | 974 | — | 1,838 | — | 2,619 | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 4,665,360 | 5,593,540 | 5,256,770 | 5,209,850 | 5,307,400 | 5,216,700 | 5,135,940 | 5,101,760 | 5,026,380 | 5,055,350 | 4,983,460 | 5,420,850 | 5,436,630 | 5,442,900 | 5,341,820 | 5,052,570 | 5,052,570 | 5,180,310 | 4,955,230 | 4,955,230 |
| Cash ratio | 0.40 | 0.08 | 0.09 | 0.09 | 0.09 | 0.06 | 0.06 | 0.05 | 0.06 | 0.04 | 0.05 | 0.05 | 0.04 | 0.04 | 0.05 | 0.03 | 0.03 | 0.12 | 0.12 | 0.12 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,869,420K
+ $—K)
÷ $4,665,360K
= 0.40
The cash ratio of Advance Auto Parts Inc has shown fluctuations over the given time period. The cash ratio is a financial metric that evaluates a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position.
Based on the provided data:
- The cash ratio remained relatively stable around 0.12 from September 2021 to December 2021.
- There was a significant drop in the cash ratio to 0.03 by March 2022 and April 2022, indicating a decrease in the company's cash reserves relative to its current liabilities.
- The cash ratio increased to 0.05 by June 2022 but then decreased again to 0.04 by September 2022 and October 2022.
- There was a slight improvement in the cash ratio to 0.05 by December 2022 and this ratio was maintained in March 2023.
- The cash ratio fluctuated between 0.04 and 0.06 from April 2023 to October 2023.
- A notable increase in the cash ratio was observed by December 2023, reaching 0.09, and this ratio was maintained through June 2024.
- There was a significant spike in the cash ratio to 0.40 by December 2024, indicating a substantial increase in the company's cash reserves compared to its short-term liabilities.
Overall, the cash ratio of Advance Auto Parts Inc demonstrates varying levels of liquidity over the period, ranging from 0.03 to 0.40. Investors and analysts would likely monitor these fluctuations to assess the company's ability to meet its short-term obligations using its available cash resources.
Peer comparison
Dec 31, 2024