Advance Auto Parts Balance Sheet Health
Financial Health criteria checks 2/6
Advance Auto Parts has a total shareholder equity of $2.5B and total debt of $1.8B, which brings its debt-to-equity ratio to 70.9%. Its total assets and total liabilities are $12.3B and $9.8B respectively. Advance Auto Parts's EBIT is $114.4M making its interest coverage ratio 1.3. It has cash and short-term investments of $503.5M.
Key information
70.9%
Debt to equity ratio
US$1.79b
Debt
Interest coverage ratio | 1.3x |
Cash | US$503.47m |
Equity | US$2.52b |
Total liabilities | US$9.76b |
Total assets | US$12.28b |
Recent financial health updates
No updates
Recent updates
No updates
Financial Position Analysis
Short Term Liabilities: AAP's short term assets ($6.4B) exceed its short term liabilities ($5.3B).
Long Term Liabilities: AAP's short term assets ($6.4B) exceed its long term liabilities ($4.4B).
Debt to Equity History and Analysis
Debt Level: AAP's net debt to equity ratio (50.9%) is considered high.
Reducing Debt: AAP's debt to equity ratio has increased from 30% to 70.9% over the past 5 years.
Debt Coverage: AAP's debt is not well covered by operating cash flow (16.1%).
Interest Coverage: AAP's interest payments on its debt are not well covered by EBIT (1.3x coverage).