AutoNation Inc (AN)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 6.54 | 7.19 | 10.60 | 11.31 | 6.47 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | — | — | — | — | — |
AutoNation Inc's activity ratios provide insights into the company's efficiency in managing its operations.
1. Inventory Turnover: AutoNation's inventory turnover has shown fluctuations over the years, ranging from 6.47 in 2020 to 11.31 in 2021, and then stabilizing around 10.60 in 2022. The decreasing trend from 2022 to 2024, dropping to 6.54, suggests that the company might be experiencing some inventory management challenges or changes in sales patterns.
2. Receivables Turnover: The data shows that AutoNation did not provide information on receivables turnover for the years 2020 to 2024. This lack of data makes it difficult to assess how efficiently the company is collecting its receivables.
3. Payables Turnover: Similar to receivables turnover, AutoNation did not disclose data on payables turnover for the years 2020 to 2024. The absence of this information hinders the evaluation of how effectively the company is managing its payables.
4. Working Capital Turnover: The data indicates that AutoNation did not report working capital turnover for the years 2020 to 2024. Working capital turnover could provide valuable insights into how efficiently the company is utilizing its working capital to generate sales.
In conclusion, while the inventory turnover ratios provide some insight into AutoNation's operational efficiency, the lack of data on receivables turnover, payables turnover, and working capital turnover limits a comprehensive analysis of the company's overall activity and working capital management.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 55.80 | 50.75 | 34.42 | 32.29 | 56.38 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
AutoNation Inc's Days of Inventory on Hand (DOH) ratio decreased from 56.38 days in December 2020 to 32.29 days in December 2021, indicating a significant improvement in managing inventory levels efficiently. In the following years, the DOH ratio slightly increased to 34.42 days in 2022, then rose notably to 50.75 days in 2023, and further increased to 55.80 days in 2024.
Regarding Days of Sales Outstanding (DSO) and Number of Days of Payables ratios, the data provided indicates that no specific values were reported for the years ranging from 2020 to 2024. As such, it is challenging to assess the company's efficiency in collecting receivables and managing payables during those years.
In conclusion, AutoNation Inc's activity ratios, especially the DOH ratio, have shown some fluctuations over the years, suggesting changes in inventory management practices. However, the absence of data for DSO and payables limits a comprehensive analysis of the company's overall efficiency in managing its working capital cycle.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 7.48 | 7.56 | 6.50 |
| Total asset turnover | 2.06 | 2.25 | 2.68 | 2.89 | 2.06 |
AutoNation Inc's fixed asset turnover ratio has shown a positive trend over the years, increasing from 6.50 in 2020 to 7.56 in 2021, and then slightly decreasing to 7.48 in 2022. However, data is not available for 2023 and 2024. This ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue.
In contrast, the total asset turnover ratio has been more volatile, with a significant increase from 2.06 in 2020 to 2.89 in 2021, followed by a decrease to 2.68 in 2022, and further decline to 2.25 in 2023. The ratio measures the company's ability to generate sales from its total assets.
Overall, the fixed asset turnover ratio reflects the efficiency of AutoNation in generating sales relative to its investment in fixed assets, while the total asset turnover ratio provides insight into the company's overall asset utilization efficiency.