AutoNation Inc (AN)

Days of sales outstanding (DSO)

		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
Receivables turnover		25.90	30.64	31.64	35.86	31.42	41.38	37.69	35.69	35.40	39.88	31.12	24.48	24.12	29.53	30.02	40.98	23.27	25.56	27.01	27.00
DSO	days	14.09	11.91	11.54	10.18	11.62	8.82	9.69	10.23	10.31	9.15	11.73	14.91	15.13	12.36	12.16	8.91	15.68	14.28	13.52	13.52

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 25.90
= 14.09

To analyze Autonation Inc.'s days of sales outstanding (DSO) based on the data provided, we can observe a gradual increase in DSO over the past quarters. In Q4 2023, DSO stood at 14.09 days, showing an increase from the previous quarter's 11.91 days in Q3 2023. This trend continues with higher DSO figures of 11.54 days in Q2 2023 and 10.18 days in Q1 2023.

Comparing these recent figures to the same quarters in the previous year, we see a considerable uptrend in DSO. For instance, in Q4 2022, DSO was 11.62 days, higher than the same quarter in 2023. This trend persists throughout 2022 with DSO figures of 8.82 days in Q3, 9.69 days in Q2, and 10.23 days in Q1.

Overall, the increasing DSO over the quarters indicates that Autonation is taking longer to collect its accounts receivable, which may lead to liquidity challenges in the short term if not managed effectively. Further analysis should be conducted to understand the underlying reasons for the increase in DSO and to implement strategies to improve collections efficiency.