Advance Auto Parts Inc (AAP)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Oct 7, 2023 | Sep 30, 2023 | Jul 15, 2023 | Jun 30, 2023 | Apr 22, 2023 | Mar 31, 2023 | Dec 31, 2022 | Oct 8, 2022 | Sep 30, 2022 | Jun 30, 2022 | Apr 23, 2022 | Mar 31, 2022 | Dec 31, 2021 | Oct 9, 2021 | Sep 30, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,869,420 | 464,492 | 479,418 | 451,003 | 503,471 | 316,554 | 317,528 | 275,226 | 277,064 | 223,880 | 226,499 | 270,805 | 191,204 | 191,204 | 240,551 | 138,733 | 138,733 | 601,428 | 604,645 | 604,645 |
| Short-term investments | US$ in thousands | — | — | — | — | — | 974 | — | 1,838 | — | 2,619 | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | 868,305 | — | 793,772 | — | 782,093 | — | — | 845,667 | — | — | 957,799 | — | — | 931,758 | — |
| Total current liabilities | US$ in thousands | 4,665,360 | 5,593,540 | 5,256,770 | 5,209,850 | 5,307,400 | 5,216,700 | 5,135,940 | 5,101,760 | 5,026,380 | 5,055,350 | 4,983,460 | 5,420,850 | 5,436,630 | 5,442,900 | 5,341,820 | 5,052,570 | 5,052,570 | 5,180,310 | 4,955,230 | 4,955,230 |
| Quick ratio | 0.40 | 0.08 | 0.09 | 0.09 | 0.09 | 0.23 | 0.06 | 0.21 | 0.06 | 0.20 | 0.05 | 0.05 | 0.19 | 0.04 | 0.05 | 0.22 | 0.03 | 0.12 | 0.31 | 0.12 |
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, a measure of the company's ability to meet its short-term obligations with its most liquid assets, has shown fluctuating trends over the past few quarters. As of December 31, 2024, the quick ratio stood at a relatively healthy 0.40, indicating that the company had $0.40 in liquid assets available to cover each dollar of its current liabilities.
However, it's important to note that the quick ratio has experienced significant variability during the period under review, ranging from a low of 0.03 on March 31, 2022, to a high of 0.40 on December 31, 2024. This fluctuation suggests potential challenges in managing short-term liquidity in certain periods.
Overall, a quick ratio above 1 is generally considered desirable as it indicates that a company can easily cover its short-term liabilities without relying heavily on inventory. Advance Auto Parts Inc's recent quick ratio levels indicate some fluctuations, and further monitoring of liquidity management strategies may be warranted to ensure ongoing financial stability and liquidity.
Peer comparison
Dec 31, 2024