Advance Auto Parts Inc (AAP)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,786,360 | 1,188,280 | 1,034,320 | 1,032,980 | 747,320 |
| Total assets | US$ in thousands | 12,276,300 | 11,986,400 | 12,194,200 | 11,839,600 | 11,248,500 |
| Debt-to-assets ratio | 0.15 | 0.10 | 0.08 | 0.09 | 0.07 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,786,360K ÷ $12,276,300K
= 0.15
The debt-to-assets ratio of Advance Auto Parts Inc has been on an increasing trend over the years, indicating a higher level of debt relative to its total assets. In 2023, the ratio stands at 0.15, up from 0.10 in 2022 and 0.08 in 2021. This suggests that the company is relying more on debt financing to fund its operations and investments. However, it is important to note that the ratio is still relatively low, indicating that the company's assets are largely financed by equity rather than debt. Overall, the increasing trend in the debt-to-assets ratio warrants further investigation into the company's debt management and financial stability.
Peer comparison
Dec 31, 2023