AutoNation Inc (AN)

Short-term

Turnover ratios

AutoNation Inc's Inventory turnover has shown a fluctuating trend over the years, increasing from 4.77 in March 31, 2020, to a peak of 13.65 in September 30, 2021, before gradually decreasing to 6.16 in September 30, 2024. This indicates that the company's ability to turn its inventory into sales has improved significantly but has slightly declined in the most recent period.

The Receivables turnover ratio was not provided for any period, which may suggest that the company does not have significant accounts receivable turnover or the data is not available.

Similarly, the Payables turnover ratio was not provided for any period, making it difficult to assess the efficiency of the company in managing its trade payables.

The Working capital turnover ratio, on the other hand, shows a varied performance, with a significant value of 375.47 in March 31, 2021, indicating efficient utilization of working capital during that period. In subsequent periods, the ratio fluctuated, possibly due to changes in the company's operations or financial management practices.

Overall, while the Inventory turnover and Working capital turnover ratios provide some insight into AutoNation Inc's operational efficiency and working capital management, the absence of data for Receivables turnover and Payables turnover limits a comprehensive analysis of the company's activity ratios.

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Average number of days

AutoNation Inc's activity ratios reflect its efficiency in managing its inventory, sales, and payables.

1. Days of Inventory on Hand (DOH):
- The trend in AutoNation's DOH shows a significant decrease from 76.54 days on March 31, 2020, to 55.50 days on December 31, 2024.
- This indicates that the company has been able to improve its inventory management efficiency over the years, lowering the number of days it takes to sell its inventory.

2. Days of Sales Outstanding (DSO):
- The data provided does not include the Days of Sales Outstanding, which indicates that the specific value for this ratio is not available for analysis.
- DSO measures how long it takes for a company to collect its accounts receivable, and a lower DSO is generally considered more favorable as it implies faster collections.

3. Number of Days of Payables:
- Similar to DSO, the information for the Number of Days of Payables is not provided in the data.
- This ratio reflects the number of days a company takes to pay its suppliers. A higher number of days indicates that the company takes longer to pay its bills, which can be advantageous for maintaining liquidity.

In summary, AutoNation Inc has shown improvement in managing its inventory turnover based on the decreasing trend in Days of Inventory on Hand. It would be beneficial for the company to provide data for Days of Sales Outstanding and Number of Days of Payables for a more comprehensive analysis of its overall activity ratios.

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Long-term

AutoNation Inc's fixed asset turnover ratio has shown a generally increasing trend over the last few years, indicating that the company is generating more sales revenue relative to its investment in fixed assets. The ratio improved from 6.64 in March 2020 to 7.28 in March 2023, before declining slightly to 6.56 in September 2023 and remaining stable thereafter.

In contrast, the total asset turnover ratio fluctuated over the same period, peaking at 3.08 in September 2021 but showing some variability in subsequent periods. The ratio dipped to 2.08 in June 2024, potentially signaling a reduction in sales generated for each dollar of total assets employed during that period.

Overall, the trend in fixed asset turnover suggests that AutoNation Inc became more efficient in utilizing its fixed assets to generate sales revenue, while the total asset turnover ratio fluctuated, possibly indicating some challenges in optimizing the usage of total assets to drive sales.