Advance Auto Parts Inc (AAP)
Debt-to-equity 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-equity ratio | 0.71 | 0.59 | 0.65 | 0.70 | 0.46 | 0.37 | 0.00 | 0.33 | 0.35 | 0.34 | 0.30 | 0.29 | 0.30 | 0.36 | 0.36 | 0.21 | 0.22 | 0.20 | 0.21 | 0.29 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,786,360K ÷ $2,519,730K
= 0.71
The debt-to-equity ratio of Advance Auto Parts Inc has shown a fluctuating trend over the past few years, indicating variations in the company's capital structure. The ratio ranged from 0.00 to 0.71 during the period under review, with the highest ratio recorded on Dec 31, 2023, and the lowest on Dec 31, 2022.
A higher debt-to-equity ratio suggests that the company is relying more on debt financing rather than equity, which can increase financial risk. Conversely, a lower ratio indicates a more conservative approach with less reliance on debt.
Overall, the company experienced an upward trend in the debt-to-equity ratio from 0.20 in Dec 31, 2018, to 0.71 in Dec 31, 2023. Investors and stakeholders may need to closely monitor this ratio to assess the company's leverage and financial health.
Peer comparison
Dec 31, 2023