Advance Auto Parts Inc (AAP)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.32 | 1.20 | 1.11 | 1.21 | 1.32 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $6,143,540K ÷ $4,665,360K
= 1.32
The current ratio of Advance Auto Parts Inc has exhibited some fluctuations over the past five years, ranging from a high of 1.32 in December 2020 to a low of 1.11 in December 2022. The current ratio measures the company's ability to cover its short-term obligations with its current assets. A ratio above 1 indicates that the company has more current assets than current liabilities, suggesting a healthy liquidity position.
While the current ratio decreased to 1.21 in December 2021 and then slightly improved to 1.20 in December 2023, it returned to 1.32 by December 2024. This suggests that Advance Auto Parts Inc has generally maintained a satisfactory ability to meet its short-term financial obligations throughout the period, albeit with some variations. It is important to continue monitoring this ratio to ensure the company's liquidity position remains robust.
Peer comparison
Dec 31, 2024