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Advance Auto PartsMEX:AAP 55 Cash Ratio is 0.72 as of Mar. 2026, which is 500% above its 10-year median of 0.12. GuruFocus rates MEX:AAP with a GF Score™ of 55/100 and a GF Value™ of MXN909.43 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,306 Vehicles & Parts companies, Advance Auto Parts ranks better than 70.98% on this metric.
Advance Auto Parts has a Cash Ratio of 0.72. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Advance Auto Parts's Cash Ratio or its related term are showing as below:
MEX:AAP'
s Cash Ratio Range Over the Past 10 Years
Min: 0.03 Med: 0.12 Max: 0.75
Current: 0.72
During the past 13 years, Advance Auto Parts's highest Cash Ratio was 0.75. The lowest was 0.03. And the median was 0.12.
MEX:AAP's Cash Ratio is ranked better than 70.98% of 1306
companies
in the Vehicles & Parts industry
Industry Median: 0.37
vs MEX:AAP: 0.72
Advance Auto Parts (MEX:AAP) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Advance Auto Parts Cash Ratio Related Terms
Advance Auto Parts Cash Ratio Historical Data
* Premium members only.
The historical data trend for Advance Auto Parts's Cash Ratio 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.
For the Auto Parts subindustry, Advance Auto Parts's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Advance Auto Parts Cash Ratio vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Advance Auto Parts's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Advance Auto Parts's Cash Ratio falls into.
* 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.
Advance Auto Parts (MEX:AAP) has a Cash Ratio of 0.72 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Advance Auto Parts and its competitors. This is 500% above median its historical median of 0.12. Over the past decade, Advance Auto Parts' Cash Ratio has ranged from 0.03 to 0.75. According to the industry distribution chart, Advance Auto Parts ranks #379 out of 1306 companies in the Vehicles & Parts industry, placing it in the top 29%.
Is Advance Auto Parts' Cash Ratio too high?
Advance Auto Parts' current Cash Ratio of 0.72 is 500% above median its 10-year median of 0.12. Over the past 10 years, this metric has ranged from a low of 0.03 to a high of 0.75. The Vehicles & Parts industry median Cash Ratio is 0.37. Advance Auto Parts' value of 0.72 is 94.6% above this industry median. Based on the distribution chart, Advance Auto Parts ranks #379 out of 1306 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Advance Auto Parts has a GF Score™ of 55/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Advance Auto Parts' Cash Ratio compare to QS and VGNT?
According to the Vehicles & Parts industry distribution chart, Advance Auto Parts ranks #379 out of 1306 companies for Cash Ratio. This puts Advance Auto Parts in the upper half of its industry. The industry median Cash Ratio is 0.37. Advance Auto Parts' value of 0.72 is 94.6% above this benchmark. Historically, Advance Auto Parts' own Cash Ratio has ranged from 0.03 to 0.75 over the past decade. While the company's 10-year median is 0.12 vs. the industry median of 0.37, Advance Auto Parts has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Vehicles & Parts company?
The median Cash Ratio among Vehicles & Parts companies is 0.37, based on 1,306 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Advance Auto Parts's current Cash Ratio of 0.72 is 94.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Advance Auto Parts and its competitors. For the Vehicles & Parts industry, the median Cash Ratio is 0.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advance Auto Parts's current Cash Ratio is 0.72, which is 500% above median its own 10-year median of 0.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advance Auto Parts stock overvalued right now?
Based on GuruFocus' analysis, Advance Auto Parts (MEX:AAP) is currently considered Fairly Valued. The stock's GF Value™ is MXN909.43, compared to a current price of MXN968.18 — trading 6.5% above its estimated fair value. The current Cash Ratio is 0.72, which is 500% above median its 10-year median of 0.12 and 94.6% above the Vehicles & Parts industry median of 0.37. Advance Auto Parts' overall GF Score™ is 55/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Advance Auto Parts (MEX:AAP), the current Cash Ratio is 0.72 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Advance Auto Parts (MEX:AAP) Overvalued in 2026?
Based on GuruFocus' analysis, Advance Auto Parts stock appears to be overvalued.
The current stock price of MXN968.18 is trading 6.5% above its estimated GF Value™ of MXN909.43.
GuruFocus considers Advance Auto Parts to be Fairly Valued.
Key valuation signals for MEX:AAP:
Cash Ratio: 0.72 (500% above median its 10-year median of 0.12)
GF Value™: MXN909.43 vs. price of MXN968.18 (6.5% above fair value)
Industry Position: 94.6% above the Vehicles & Parts median (#379 of 1306)
No single metric tells the full story. See the MEX:AAP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Advance Auto Parts is a leading auto-parts retailer in North America with more than 4,000 store and branch locations. About half of the firm's sales are geared toward the professional channel, with the remaining sales in the do-it-yourself market. Through its vast store footprint and distribution network, Advance manages thousands of stock-keeping units for various vehicle makes and models. The retailer primarily competes on inventory availability and service speed, making the operating efficiency of its hub-and-spoke distribution model critical to meeting customer needs.
55GF Score
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