Advance Auto Parts Inc (AAP)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Oct 7, 2023 | Sep 30, 2023 | Jul 15, 2023 | Jun 30, 2023 | Apr 22, 2023 | Mar 31, 2023 | Dec 31, 2022 | Oct 8, 2022 | Sep 30, 2022 | Jun 30, 2022 | Apr 23, 2022 | Mar 31, 2022 | Dec 31, 2021 | Oct 9, 2021 | Sep 30, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 10,798,100 | 12,468,200 | 12,289,800 | 12,201,100 | 13,000,800 | 12,249,200 | 12,248,900 | 12,299,200 | 12,304,400 | 12,177,300 | 12,182,200 | 11,986,400 | 12,129,300 | 12,132,100 | 12,138,000 | 12,002,500 | 12,002,500 | 12,194,200 | 11,864,200 | 11,864,200 |
| Total stockholders’ equity | US$ in thousands | 2,169,940 | 2,597,680 | 2,606,750 | 2,564,650 | 2,519,730 | 2,566,340 | 2,646,870 | 2,642,650 | 2,723,190 | 2,562,720 | 2,636,160 | 2,599,190 | 2,719,550 | 2,716,080 | 2,794,810 | 2,909,680 | 2,909,680 | 3,128,290 | 3,196,540 | 3,196,540 |
| Financial leverage ratio | 4.98 | 4.80 | 4.71 | 4.76 | 5.16 | 4.77 | 4.63 | 4.65 | 4.52 | 4.75 | 4.62 | 4.61 | 4.46 | 4.47 | 4.34 | 4.13 | 4.13 | 3.90 | 3.71 | 3.71 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $10,798,100K ÷ $2,169,940K
= 4.98
The financial leverage ratio of Advance Auto Parts Inc has been fluctuating over the reported periods. The financial leverage ratio, which indicates the company's reliance on debt financing, increased steadily from September 2021 to December 2023, peaking at 5.16. Subsequently, the ratio decreased moderately by June 2024 to 4.71 before rising to 4.80 by September 2024 and reaching 4.98 by December 2024.
This trend suggests that Advance Auto Parts Inc has been increasing its reliance on debt financing over the earlier periods but then seemed to make efforts to reduce its debt levels. However, it is worth monitoring the trend to ensure the company maintains a healthy balance between debt and equity to support its operations and future growth.
Peer comparison
Dec 31, 2024