AutoNation Inc (AN)

Payables 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
Payables	US$ in thousands	344,700	327,600	395,900	335,200	290,300
Payables turnover		63.29	66.30	52.77	50.19	61.36

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $21,817,400K ÷ $344,700K
= 63.29

Autonation Inc.'s payables turnover ratio has been relatively stable over the past five years, with values ranging from 50.19 to 66.30. This ratio indicates how many times, on average, the company pays off its accounts payable during a specific period.

A higher payables turnover ratio typically suggests that the company is paying its suppliers more frequently within a year. Autonation Inc.'s consistent payables turnover indicates an efficient management of its accounts payable.

The recent decrease in the payables turnover ratio from 66.30 in 2022 to 63.29 in 2023 may indicate a slight slowdown in the pace of payments to suppliers. However, it is essential to consider industry standards and company-specific factors when evaluating the implications of this change. Overall, Autonation Inc.'s payables turnover ratio reflects a healthy relationship with its suppliers.