AutoNation Inc (AN)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 26,948,900 | 26,985,000 | 25,844,000 | 20,390,000 | 21,335,700 |
| Property, plant and equipment | US$ in thousands | 3,791,600 | 3,607,200 | 3,419,500 | 3,138,100 | 3,174,600 |
| Fixed asset turnover | 7.11 | 7.48 | 7.56 | 6.50 | 6.72 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $26,948,900K ÷ $3,791,600K
= 7.11
The fixed asset turnover ratio measures the efficiency of Autonation Inc. in generating sales from its fixed assets. A higher fixed asset turnover indicates that the company is utilizing its fixed assets effectively to generate revenue.
Autonation Inc. has shown a consistent trend of high fixed asset turnover over the past five years. The ratio has ranged from 6.50 to 7.56, with the most recent ratio standing at 7.11 as of December 31, 2023.
This consistent and relatively high fixed asset turnover suggests that Autonation Inc. is effectively utilizing its fixed assets to generate sales. It indicates that the company is efficiently managing and utilizing its property, plant, and equipment to drive revenue generation.
Overall, the trend of high fixed asset turnover ratios for Autonation Inc. reflects positively on the company's operational efficiency and effectiveness in utilizing its fixed assets to support its sales activities.
Peer comparison
Dec 31, 2023