Advance Auto Parts Inc (AAP)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,169,940 | 2,519,730 | 2,599,190 | 3,128,290 | 3,559,510 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $2,169,940K)
= 0.00
Advance Auto Parts Inc has consistently maintained a debt-to-capital ratio of 0.00 from December 31, 2020, to December 31, 2024. This indicates that the company has not utilized debt as a significant source of its capital structure during this period. A debt-to-capital ratio of 0.00 implies that the company's capital is primarily funded through equity rather than debt, which may be viewed as a positive signal by investors and lenders, as it signifies a lower financial risk and potential for financial stability. However, it is important to consider that a low debt-to-capital ratio may also limit the company's financial flexibility and ability to benefit from tax advantages associated with debt financing. Overall, the consistent 0.00 debt-to-capital ratio suggests a conservative financial strategy employed by Advance Auto Parts Inc.
Peer comparison
Dec 31, 2024