AutoNation Inc (AN)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 26,948,900 | 26,985,000 | 25,844,000 | 20,390,000 | 21,335,700 |
| Receivables | US$ in thousands | 1,040,400 | 858,800 | 730,000 | 845,200 | 916,700 |
| Receivables turnover | 25.90 | 31.42 | 35.40 | 24.12 | 23.27 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $26,948,900K ÷ $1,040,400K
= 25.90
The receivables turnover of Autonation Inc. has shown a fluctuating trend over the past five years. In 2023, the company's receivables turnover decreased to 25.90 from 31.42 in 2022, indicating that the company took longer to collect its accounts receivable in 2023 compared to the previous year.
While the receivables turnover was lower in 2023, it remained relatively high compared to 2020 and 2019. This suggests that, despite the decrease, Autonation Inc. is still efficient in collecting its receivables within a reasonable timeframe.
It is important to note that a higher receivables turnover ratio is generally favorable as it indicates that the company is quickly converting its accounts receivable into cash. However, a significant increase or decrease in the ratio can also be influenced by changes in credit policies, customer payment behaviors, or the nature of the industry.
Overall, examining the trend of Autonation Inc.'s receivables turnover ratio provides insights into the company's effectiveness in managing its accounts receivable and liquidity position over the years.
Peer comparison
Dec 31, 2023