AutoNation Inc (AN)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 7.19 8.19 8.33 9.74 10.60 11.65 11.19 12.64 11.31 13.65 11.25 7.91 6.47 6.72 6.91 4.77 5.39 5.40 5.02 4.70
Receivables turnover 25.90 30.64 31.64 35.86 31.42 41.38 37.69 35.69 35.40 39.88 31.12 24.48 24.12 29.53 30.02 40.98 23.27 25.56 27.01 27.00
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
Working capital turnover — — — — — 192.48 75.67 59.98 — — — 375.47 — — — — — — — —

Autonation Inc.'s inventory turnover has been gradually decreasing over the past eight quarters, from 12.64 in Q1 2022 to 7.19 in Q4 2023. This indicates that the company is taking longer to sell its inventory.

On the other hand, the receivables turnover ratio has fluctuated over the same period, with an overall decreasing trend. This implies that Autonation is taking longer to collect payments from its customers.

The payables turnover ratio has also varied, showing a slight decrease from Q4 2022 to Q2 2023, before increasing again in Q3 and Q4 2023. This suggests some inconsistency in how quickly Autonation is paying its suppliers.

Additionally, the working capital turnover ratio was significantly high in Q3 and Q1 2022 but has not been reported for the subsequent quarters. This may indicate a change in the company's working capital management strategy during that period.

Overall, a detailed analysis of Autonation Inc.'s activity ratios shows a mixed performance in managing its inventory, receivables, payables, and working capital turnover over the past eight quarters.

Average number of days

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
Days of inventory on hand (DOH) days 50.75 44.54 43.80 37.48 34.42 31.33 32.62 28.88 32.29 26.74 32.45 46.13 56.38 54.33 52.79 76.54 67.74 67.56 72.78 77.64
Days of sales outstanding (DSO) days 14.09 11.91 11.54 10.18 11.62 8.82 9.69 10.23 10.31 9.15 11.73 14.91 15.13 12.36 12.16 8.91 15.68 14.28 13.52 13.52
Number of days of payables days 5.77 5.75 6.65 5.92 5.51 5.82 6.36 6.56 6.92 6.33 7.32 8.45 7.27 7.54 5.67 4.69 5.95 5.51 5.48 5.54

Autonation Inc.'s activity ratios based on the provided data indicate the following trends:

1. Days of Inventory on Hand (DOH): The trend in DOH shows an increase throughout the quarters, suggesting that, on average, Autonation is holding onto inventory for a longer period before it is sold. This could potentially indicate overstocking or slower inventory turnover.

2. Days of Sales Outstanding (DSO): DSO indicates the average number of days it takes for Autonation to collect payments from its customers. The trend shows a slight increase in DSO over the quarters, indicating a lengthening of the collection period. This could potentially point to issues with accounts receivable management or changes in customer payment behavior.

3. Number of Days of Payables: The trend in the number of days of payables shows fluctuations but remains relatively stable over the quarters. Autonation is taking between 5 to 6 days to pay its suppliers on average. A stable payables period may indicate consistent payment practices and good relationships with suppliers.

Overall, the analysis of Autonation's activity ratios highlights potential areas for further investigation, such as inventory management efficiency, accounts receivable collection policies, and supplier payment strategies. Monitoring and addressing these trends can help optimize working capital management and operational efficiency for Autonation Inc.

Long-term

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
Fixed asset turnover 7.11 7.22 7.18 7.28 7.48 7.68 7.67 7.82 7.56 7.78 7.78 6.96 6.50 6.45 6.43 6.64 6.72 6.77 6.77 6.75
Total asset turnover 2.25 2.39 2.41 2.57 2.68 2.85 2.86 2.85 2.89 3.08 2.87 2.33 2.06 2.11 2.14 1.99 2.02 2.03 1.97 1.94

Autonation Inc. has shown consistent efficiency in utilizing its fixed assets to generate revenue, as indicated by the high fixed asset turnover ratios ranging from 7.11 to 7.82 over the past eight quarters. This signifies that for every dollar invested in fixed assets, the company is able to generate a significant amount of sales.

In terms of total asset turnover, Autonation Inc. has demonstrated a stable trend with ratios fluctuating between 2.25 and 2.85 over the same period. This ratio reflects the company's ability to generate sales relative to its total assets. The decreasing trend in total asset turnover ratios from Q1 2023 to Q3 2023 may indicate inefficiencies in asset utilization during this period, which could warrant further investigation.

Overall, the high fixed asset turnover ratios suggest efficient management of fixed assets, while the stable total asset turnover ratios indicate a consistent ability to generate sales relative to total assets. However, the slight decline in total asset turnover ratios in recent quarters may warrant closer monitoring to ensure optimal asset utilization and revenue generation.