Advance Auto Parts Inc (AAP)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 503,471 | 316,554 | 275,226 | 223,880 | 270,805 | 191,204 | 138,733 | 601,428 | 604,645 | 809,287 | 880,233 | 834,992 | 1,068,200 | 1,141,500 | 1,279,840 | 418,665 | 573,726 | 747,719 | 537,330 | 896,527 |
| Short-term investments | US$ in thousands | — | 974 | 1,838 | 2,619 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 800,141 | 868,305 | 793,772 | 782,093 | 684,048 | 845,667 | 957,799 | 782,785 | 931,758 | 803,880 | 804,826 | 749,999 | 843,054 | 742,346 | 627,405 | 689,469 | 721,342 | 713,061 | 684,419 | 624,972 |
| 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 |
| Quick ratio | 0.25 | 0.23 | 0.21 | 0.20 | 0.18 | 0.19 | 0.22 | 0.27 | 0.31 | 0.33 | 0.35 | 0.33 | 0.41 | 0.42 | 0.39 | 0.25 | 0.29 | 0.33 | 0.28 | 0.39 |
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 shown fluctuations over the past few years, ranging from 0.18 to 0.42. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
In the most recent period, as of Dec 31, 2023, the quick ratio is 0.25, indicating that the company may have difficulty meeting its short-term liabilities using its quick assets alone. This suggests a relatively low level of liquidity and could raise concerns about the company's ability to handle immediate financial obligations.
Looking at historical trends, there appears to be some variability in the quick ratio, with occasional improvements and declines. The ratio peaked at 0.42 in Sep 30, 2020, indicating a stronger liquidity position at that time. However, the ratio has since decreased, hitting a low of 0.18 on Dec 31, 2022.
Overall, the trend in the quick ratio for Advance Auto Parts Inc suggests potential liquidity challenges and highlights the importance of monitoring the company's ability to manage its short-term financial commitments effectively.
Peer comparison
Dec 31, 2023