Advance Auto Parts Inc (AAP)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 6,377,020 | 6,320,690 | 6,321,320 | 6,196,740 | 6,014,820 | 6,159,720 | 6,057,780 | 6,275,480 | 6,161,260 | 6,221,870 | 6,310,720 | 6,270,000 | 6,437,350 | 6,395,520 | 6,572,000 | 5,695,540 | 5,826,650 | 5,962,470 | 5,781,840 | 6,082,450 |
| 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 |
| Current ratio | 1.20 | 1.21 | 1.24 | 1.23 | 1.11 | 1.13 | 1.20 | 1.21 | 1.24 | 1.27 | 1.32 | 1.32 | 1.38 | 1.44 | 1.36 | 1.27 | 1.31 | 1.36 | 1.34 | 1.57 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $6,377,020K ÷ $5,307,400K
= 1.20
Advance Auto Parts Inc's current ratio has shown some fluctuations over the past few years. The current ratio measures the company's ability to cover its short-term liabilities with its short-term assets.
From the data provided, we can observe that the current ratio has been relatively stable, fluctuating between 1.11 and 1.57. A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered a healthy sign.
In recent periods, the current ratio has ranged between 1.20 and 1.27, indicating that Advance Auto Parts Inc has been able to meet its short-term obligations with its current assets. However, it is worth noting that the current ratio peaked at 1.57 in 2018, suggesting a relatively stronger liquidity position at that time.
Overall, the current ratio analysis suggests that Advance Auto Parts Inc has been managing its short-term liquidity effectively, with the ability to cover its current liabilities with current assets. However, analysts may want to delve deeper into the components of current assets and liabilities to better understand the company's working capital management and liquidity position.
Peer comparison
Dec 31, 2023