AutoNation Inc (AN)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 25.90 | 31.42 | 35.40 | 24.12 | 23.27 | |
| DSO | days | 14.09 | 11.62 | 10.31 | 15.13 | 15.68 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 25.90
= 14.09
Autonation Inc.'s Days Sales Outstanding (DSO) measures the average number of days it takes for the company to collect revenue after a sale is made. Looking at the trend over the past five years, we observe a fluctuating pattern in DSO:
- In 2023, the DSO increased to 14.09 days from 11.62 days in 2022, indicating a slower collection of revenue compared to the previous year.
- The DSO was further up in 2023 compared to 2021, where it stood at 10.31 days. This may suggest a deterioration in the company's accounts receivable management efficiency.
- In 2020, the DSO decreased significantly to 15.13 days from 15.68 days in 2019, indicating an improvement in the collection process.
Overall, the upward trend in DSO from 2020 to 2023 signals potential challenges in collecting receivables promptly, which could impact the company's cash flow and liquidity position. Further investigation into the reasons behind this trend shift may be necessary to assess the company's overall financial health and management of accounts receivable.
Peer comparison
Dec 31, 2023