Advance Auto Parts Inc (AAP)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 503,471 | 270,805 | 601,428 | 834,992 | 418,665 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 800,141 | 684,048 | 782,785 | 749,999 | 689,469 |
| Total current liabilities | US$ in thousands | 5,307,400 | 5,420,850 | 5,180,310 | 4,743,920 | 4,477,700 |
| Quick ratio | 0.25 | 0.18 | 0.27 | 0.33 | 0.25 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($503,471K
+ $—K
+ $800,141K)
÷ $5,307,400K
= 0.25
The quick ratio of Advance Auto Parts Inc has fluctuated over the past five years. The quick ratio measures the company's ability to meet its short-term liabilities with its most liquid assets.
In 2023, the quick ratio stands at 0.25, indicating that for every dollar of current liabilities, the company has $0.25 of quick assets available to cover those obligations. This suggests a slight improvement compared to the previous year.
In 2022, the quick ratio was 0.18, which indicated that the company had $0.18 in liquid assets for every dollar of current liabilities. This was the lowest quick ratio observed in the given period and could raise concerns about the company's short-term liquidity position.
In 2021, the quick ratio improved to 0.27, showing that the company had $0.27 of quick assets for every dollar of current liabilities. This improvement from the previous year suggests better liquidity management.
In 2020, the quick ratio was 0.33, indicating that the company had $0.33 of liquid assets for every dollar of current liabilities. This was the highest quick ratio in the analyzed period, reflecting a stronger liquidity position.
In 2019, the quick ratio was 0.25, similar to 2023, implying $0.25 of quick assets for every dollar of current liabilities. This suggests that the company's liquidity position was consistent with the current year.
Overall, the trend in Advance Auto Parts Inc's quick ratio indicates some fluctuations in its ability to cover short-term obligations with liquid assets. It is essential for stakeholders to monitor this ratio to assess the company's liquidity and short-term financial health.
Peer comparison
Dec 31, 2023