Advance Auto Parts Inc (AAP)
Debt-to-assets 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,786,360 | 1,518,770 | 1,706,400 | 1,784,180 | 1,188,280 | 998,000 | — | 1,034,320 | 1,103,630 | 1,121,000 | 1,033,370 | 1,032,980 | 1,128,000 | 1,352,000 | 1,283,000 | 747,320 | 747,136 | 746,951 | 746,767 | 1,045,720 |
| Total assets | US$ in thousands | 12,276,300 | 12,249,200 | 12,299,200 | 12,177,300 | 11,986,400 | 12,129,300 | 12,002,500 | 12,194,200 | 11,864,200 | 11,838,700 | 11,868,500 | 11,839,600 | 11,972,800 | 11,930,700 | 12,072,600 | 11,248,500 | 11,106,800 | 11,267,900 | 11,081,500 | 9,040,650 |
| Debt-to-assets ratio | 0.15 | 0.12 | 0.14 | 0.15 | 0.10 | 0.08 | 0.00 | 0.08 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.11 | 0.11 | 0.07 | 0.07 | 0.07 | 0.07 | 0.12 |
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 shown some fluctuations over the past several quarters. The ratio indicates the proportion of the company's assets financed by debt. A higher ratio suggests more reliance on debt to fund operations and growth.
Based on the data provided, the debt-to-assets ratio ranged from 0.00 to 0.15 during the period. The lowest ratio of 0.00 in April 2022 indicates either minimal or no debt on the company's balance sheet at that time. This might suggest strong liquidity or a conservative approach to leverage.
The ratio increased to 0.15 in both Dec 31, 2023, and Apr 22, 2023, which could indicate an increase in debt levels compared to the earlier periods. However, these levels are generally moderate and may not raise significant concern about the company's financial position.
Overall, Advance Auto Parts Inc has maintained a relatively conservative level of debt compared to its assets based on the fluctuations observed in the ratio. It is essential to consider the company's overall financial strategy and industry norms when evaluating the significance of these changes in the debt-to-assets ratio.
Peer comparison
Dec 31, 2023