AutoNation Inc (AN)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 55.80 | 50.75 | 34.42 | 32.29 | 56.38 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 55.80 | 50.75 | 34.42 | 32.29 | 56.38 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 55.80 + — – —
= 55.80
The cash conversion cycle of AutoNation Inc has shown fluctuations over the past five years. As of December 31, 2020, the company had a cash conversion cycle of 56.38 days, indicating that it took approximately 56 days for AutoNation to convert its investments in inventory and other resources into cash receipts from sales.
Over the next two years, the cash conversion cycle improved, reaching 32.29 days as of December 31, 2021, and 34.42 days as of December 31, 2022. This suggests that AutoNation became more efficient in managing its working capital during this period, leading to a faster conversion of resources into cash.
However, by December 31, 2023, the cash conversion cycle increased to 50.75 days, indicating a potential slowdown in the company's working capital management or sales collection process. Furthermore, by December 31, 2024, the cash conversion cycle further extended to 55.80 days, potentially signaling challenges in converting resources into cash efficiently.
Overall, AutoNation Inc's cash conversion cycle has exhibited variability over the past five years, with periods of improvement followed by periods of deterioration. Monitoring and analyzing these fluctuations can provide insights into the company's liquidity management and operational efficiency.
Peer comparison
Dec 31, 2024