AutoNation Inc (AN)

Days of inventory on hand (DOH)

		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
DOH	days	55.80	50.75	34.42	32.29	56.38

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.54
= 55.80

The days of inventory on hand (DOH) for AutoNation Inc declined from 56.38 days as of December 31, 2020, to 32.29 days as of December 31, 2021. The company continued to manage its inventory efficiently as the DOH slightly increased to 34.42 days by December 31, 2022. However, there was a notable increase in the DOH to 50.75 days by December 31, 2023, indicating a potential build-up of inventory.

By the end of December 31, 2024, the DOH further increased to 55.80 days, which may suggest a need for AutoNation Inc to address its inventory management practices to avoid potential inefficiencies and associated carrying costs. It is essential for the company to closely monitor and optimize its inventory levels to maintain an appropriate balance between ensuring product availability and minimizing excess inventory holding costs.