Advance Auto Parts Inc (AAP)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $2,169,940K
= 0.00
Advance Auto Parts Inc has consistently maintained a debt-to-equity ratio of 0.00 from December 31, 2020, to December 31, 2024. This indicates that the company has not relied on debt financing to fund its operations and growth during this period. A debt-to-equity ratio of 0.00 signifies that the company's equity financing far exceeds its debt capital, which may suggest a strong financial position and lower financial risk. It also implies that creditors have less influence on the company's operations and decision-making processes. However, it's important to note that while a low debt-to-equity ratio is generally viewed positively, it may also indicate that the company is not taking advantage of potential leverage to enhance returns for shareholders.
Peer comparison
Dec 31, 2024