AutoNation Inc (AN)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover		6.58	6.16	6.17	7.36	7.21	8.19	8.33	9.74	10.60	11.65	11.19	12.64	11.31	13.65	11.25	7.91	6.47	6.72	6.91	4.77
DOH	days	55.50	59.29	59.15	49.57	50.61	44.54	43.80	37.48	34.42	31.33	32.62	28.88	32.29	26.74	32.45	46.13	56.38	54.33	52.79	76.54

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.58
= 55.50

AutoNation Inc's days of inventory on hand (DOH) has shown a declining trend from March 31, 2020 to September 30, 2021, indicating an improvement in managing inventory levels. The company was able to reduce its DOH from 76.54 days to 26.74 days during this period. This suggests that AutoNation has become more efficient in selling inventory or has implemented better inventory management practices.

However, from December 31, 2021 to December 31, 2024, the DOH has shown some fluctuations but has generally trended upwards, reaching 55.50 days by the end of December 2024. This increase in DOH could indicate a potential buildup of inventory or challenges in selling existing inventory effectively.

Overall, AutoNation Inc's DOH can be analyzed in conjunction with its sales trends and overall operational efficiency to assess the effectiveness of its inventory management strategy and its impact on the company's financial performance.