AutoNation Inc (AN)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		7.19	10.60	11.31	6.47	5.39
DOH	days	50.75	34.42	32.29	56.38	67.74

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.19
= 50.75

Autonation Inc.'s Days of Inventory on Hand (DOH) has exhibited fluctuations over the past five years. The trend shows a decrease in DOH from 67.74 days in 2019 to 32.29 days in 2021, followed by a slight increase to 34.42 days in 2022. However, in 2023, the DOH increased noticeably to 50.75 days.

A lower DOH indicates that the company is selling its inventory more quickly, which can be a positive sign of efficient inventory management. Conversely, a higher DOH suggests that the company may be holding excess inventory or facing challenges in selling its products promptly.

Therefore, the recent increase in DOH for Autonation Inc. in 2023 may raise concerns about the company's inventory management efficiency and its ability to effectively manage inventory levels. Further analysis of the company's sales, production, and supply chain processes would be necessary to understand the factors driving this increase in DOH and to assess the potential impact on the company's overall financial performance.