AutoNation Inc (AN)

Payables turnover

		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
Cost of revenue (ttm)	US$ in thousands	21,817,400	21,680,300	21,435,400	21,388,100	21,719,700	21,565,300	21,319,700	21,464,300	20,891,400	20,429,100	19,754,900	17,840,800	16,823,600	16,678,500	16,818,900	17,533,900	17,812,700	17,723,200	17,643,300	17,730,500
Payables	US$ in thousands	344,700	341,600	390,800	347,100	327,600	343,700	371,400	385,800	395,900	354,200	396,100	413,200	335,200	344,500	261,300	225,500	290,300	267,600	264,800	269,200
Payables turnover		63.29	63.47	54.85	61.62	66.30	62.74	57.40	55.64	52.77	57.68	49.87	43.18	50.19	48.41	64.37	77.76	61.36	66.23	66.63	65.86

December 31, 2023 calculation

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

The payables turnover ratio for Autonation Inc. ranged from 54.85 to 66.30 over the past eight quarters. The highest payables turnover ratio was observed in Q4 2022 at 66.30, indicating that Autonation Inc. paid off its accounts payables 66.30 times during that quarter. On the other hand, the lowest payables turnover ratio was recorded in Q2 2023 at 54.85, suggesting a decrease in the rate at which Autonation Inc. settled its accounts payables.

Overall, Autonation Inc. has maintained a relatively stable payables turnover ratio over the periods analyzed, with minor fluctuations. This consistency suggests that the company has efficiently managed its accounts payables and has a consistent approach to paying off its debts to suppliers.

It is important to note that a high payables turnover ratio may indicate that the company is efficiently managing its working capital by quickly paying off its debts, which could potentially strengthen supplier relationships. However, a very high payables turnover ratio could also signal that the company is not taking advantage of credit terms, leading to potential cash flow challenges. Conversely, a low payables turnover ratio may suggest that the company is taking longer to pay off its debts, potentially straining relationships with suppliers.

Further analysis and comparison with industry benchmarks would be necessary to provide a more holistic assessment of Autonation Inc.'s payables turnover performance and its implications for the company's financial health.