AutoNation Inc (AN)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		7.19	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	5.39	5.40	5.02	4.70
DOH	days	50.75	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	67.74	67.56	72.78	77.64

December 31, 2023 calculation

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

Autonation Inc.'s Days of Inventory on Hand (DOH) has shown an increasing trend over the last eight quarters, indicating a longer average time that inventory sits on the company's shelves before being sold. In Q4 2023, Autonation Inc. had an average of 50.75 days of inventory on hand, compared to the lowest point of 28.88 days in Q1 2022.

The rising DOH could suggest potential inefficiencies in inventory management, leading to higher carrying costs, storage costs, and the risk of obsolescence. It may also indicate a slowdown in sales or issues with demand forecasting and procurement processes.

It would be beneficial for Autonation Inc. to analyze the reasons behind the increasing DOH trend and implement strategies to optimize inventory levels, such as improving demand forecasting, adjusting procurement practices, or negotiating better terms with suppliers. Monitoring and actively managing the DOH metric can help the company improve operational efficiency and financial performance.