Advance Auto Parts Inc (AAP)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,869,420 | 503,471 | 270,805 | 601,428 | 834,992 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 4,665,360 | 5,307,400 | 5,420,850 | 5,180,310 | 4,743,920 |
| Quick ratio | 0.40 | 0.09 | 0.05 | 0.12 | 0.18 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,869,420K
+ $—K
+ $—K)
÷ $4,665,360K
= 0.40
The quick ratio of Advance Auto Parts Inc has experienced fluctuations over the past five years. As of December 31, 2020, the quick ratio stood at 0.18, indicating that the company had $0.18 in liquid assets available to cover each dollar of current liabilities. By December 31, 2021, the quick ratio decreased to 0.12, signaling a lower level of liquidity compared to the previous year.
Subsequently, on December 31, 2022, the quick ratio dropped further to 0.05, suggesting a significant decrease in the company's ability to meet short-term obligations with its most liquid assets. However, the quick ratio improved by December 31, 2023, reaching 0.09, although it remained relatively low compared to historical levels.
Remarkably, by December 31, 2024, the quick ratio surged to 0.40, signifying a substantial increase in liquidity and the company's capacity to cover short-term liabilities with its quick assets. Overall, Advance Auto Parts Inc's quick ratio has exhibited variability, with the most recent data pointing to a notable improvement in liquidity position.
Peer comparison
Dec 31, 2024