AutoNation Inc (AN)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	21,817,400	21,719,700	20,891,400	16,823,600	17,812,700
Inventory	US$ in thousands	3,033,400	2,048,300	1,847,900	2,598,500	3,305,800
Inventory turnover		7.19	10.60	11.31	6.47	5.39

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $21,817,400K ÷ $3,033,400K
= 7.19

Autonation Inc.'s inventory turnover has shown fluctuations over the past five years. The company's inventory turnover ratio stood at 7.19 in 2023, a decrease from 10.60 in 2022 and 11.31 in 2021. This lower turnover ratio may indicate that Autonation is taking longer to sell its inventory in 2023 compared to the previous two years.

However, when compared to 2020 and 2019, the inventory turnover has improved in 2023. In 2020, the inventory turnover was 6.47, and in 2019, it was 5.39, suggesting that Autonation is managing its inventory more efficiently in 2023.

Overall, Autonation's inventory turnover ratio has experienced variability, highlighting the importance of closely monitoring inventory management practices to ensure optimal performance and profitability.