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.