Advance Auto Parts (Advance Auto Parts) Inventory Turnover : 0.31 (As of Dec. 2023)

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What is Advance Auto Parts Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Advance Auto Parts's Cost of Goods Sold for the three months ended in Dec. 2023 was $1,544 Mil. Advance Auto Parts's Average Total Inventories for the quarter that ended in Dec. 2023 was $4,904 Mil. Advance Auto Parts's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.31.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Advance Auto Parts's Days Inventory for the three months ended in Dec. 2023 was 289.82.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Advance Auto Parts's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 1.99.

Advance Auto Parts Inventory Turnover Historical Data

The historical data trend for Advance Auto Parts's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Advance Auto Parts Inventory Turnover Chart

Advance Auto Parts Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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1.24

1.25

1.32

1.30

1.39

Advance Auto Parts Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															0.29	0.39	0.30	0.35	0.31

Advance Auto Parts Inventory Turnover Calculation

Advance Auto Parts's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	6764.105	/ (	(4896.269	+	4857.702)	/	2 )
=	6764.105	/	4876.9855
=	1.39

Advance Auto Parts's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	1543.905	/ (	(4949.382	+	4857.702)	/	2 )
=	1543.905	/	4903.542
=	0.31

Advance Auto Parts (NYSE:AAP) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Advance Auto Parts's Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	4903.542	/	1543.905	*	365 / 4
	=	289.82

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Advance Auto Parts's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	4903.542	/	2464.869
	=	1.99

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Advance Auto Parts Inventory Turnover Related Terms

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Advance Auto Parts (Advance Auto Parts) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Advance Auto Parts Inc (NYSE:AAP) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

AAP:Mexico AWN:Germany AWN:Germany A1AP34:Brazil

Address

4200 Six Forks Road, Raleigh, NC, USA, 27609

Website

https://www.advanceautoparts.com

Advance Auto Parts is one of the industry's largest retailers of aftermarket automotive parts, tools, and accessories to do-it-yourself customers and third-party vehicle repair facilities in North America. Advance operated 5,086 stores as of the end of 2022, in addition to servicing 1,311 independently owned Carquest stores. The company's Worldpac chain is a premier distributor of imported original-equipment parts. Advance derived 59% of its 2022 sales from commercial clients, with the remainder from DIY shoppers.

Executives

Kristen L Soler	officer: EVP, Chief HR Officer	12200 FOX VALLEY STREET, RALEIGH NC 27614
Lee Eugene I Jr	director	1000 DARDEN CENTER DRIVE, ORLANDO FL 32837
Shane M Okelly	director, officer: Director, President and CEO	4200 SIX FORKS ROAD, RALEIGH NC 27609
Anthony A Iskander	officer: Interim CFO, SVP, Fin & Treas	4200 SIX FORKS ROAD, RALEIGH NC 27609
Douglas A Pertz	director	1801 BAYBERRY COURT, RICHMOND VA 23226
Joan M Hilson	director	150 THORN HILL DRIVE, WARRENDALE PA 15086-7528
John Francis Ferraro	director	9 WALNUT AVE, CAMBRIDGE MA 02140
Carla Jean Bailo	director	1775 SHERMAN STREET, SUITE 1200, DENVER CO 80203
Jones Jeffrey J Ii	director	ONE H&R BLOCK WAY, KANSAS CITY MO 64105
Szilagyi J Stephen	officer: EVP Chief Supply Chain Officer	15027 JUNE WASHAM ROAD, RALEIGH NC 27609
Word Herman L Jr	officer: EVP, U.S. Stores & CQ Ind.	1033 LINENHALL WAY, WAKE FOREST NC 27587
Pellicciotti William J Jr	officer: SVP, Controller and CAO	4200 SIX FORKS ROAD, RALEIGH NC 27609
Robert B Cushing	officer: EVP, Commercial	1432 FREEMAN LANE, PLEASANTON VA 94566
Sherice Torres	director	PO BOX 20833, SAN JOSE CA 95160
Natalie Schechtman	officer: SVP Human Resources	45 ROUND HOUSE ROAD, BEDFORD NY 10506