Advance Auto Parts Inc (AAP)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 2,519,730 | 2,566,340 | 2,642,650 | 2,562,720 | 2,599,190 | 2,719,550 | 2,909,680 | 3,129,450 | 3,196,540 | 3,301,560 | 3,501,570 | 3,559,510 | 3,762,660 | 3,726,520 | 3,537,030 | 3,549,080 | 3,454,940 | 3,671,300 | 3,547,220 | 3,550,810 |
| Debt-to-capital ratio | 0.41 | 0.37 | 0.39 | 0.41 | 0.31 | 0.27 | 0.00 | 0.25 | 0.26 | 0.25 | 0.23 | 0.22 | 0.23 | 0.27 | 0.27 | 0.17 | 0.18 | 0.17 | 0.17 | 0.23 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,786,360K ÷ ($1,786,360K + $2,519,730K)
= 0.41
The debt-to-capital ratio of Advance Auto Parts Inc has shown a fluctuating trend over the past few years. In Dec 31, 2023, the ratio reached 0.41, which suggests that 41% of the company's capital structure is financed by debt. This indicates a moderate level of leverage. The ratio has been relatively stable around the 0.3 to 0.4 range in recent periods, signaling a consistent reliance on debt financing.
The ratio hit a low of 0.00 in Apr 23, 2022, which could be due to various factors such as debt repayments or increased equity financing. However, it rebounded in subsequent periods, indicating a return to a more typical capital structure. Overall, the company has maintained a reasonable balance between debt and equity in its capital structure, which is essential for long-term financial stability and growth.
Peer comparison
Dec 31, 2023