AutoNation Inc (AN)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 60,800 | 72,600 | 60,400 | 569,600 | 42,000 |
| Short-term investments | US$ in thousands | 22,800 | 15,400 | 2,200 | 101,900 | — |
| Total current liabilities | US$ in thousands | 5,582,500 | 3,405,700 | 3,059,800 | 4,165,900 | 5,100,200 |
| Cash ratio | 0.01 | 0.03 | 0.02 | 0.16 | 0.01 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($60,800K
+ $22,800K)
÷ $5,582,500K
= 0.01
The cash ratio of Autonation Inc. has fluctuated over the past five years, as indicated by the data in the table. The cash ratio measures the company's ability to cover its short-term obligations solely with its available cash and cash equivalents.
In 2023, the cash ratio decreased to 0.04, indicating a lower level of liquidity compared to the previous year. This suggests that Autonation Inc. may have had less cash on hand relative to its current liabilities at the end of 2023.
On the other hand, in 2022, the cash ratio improved to 0.07, indicating a higher level of liquidity than in 2021. This could imply that Autonation Inc. had more cash available to meet its short-term obligations at the end of 2022.
In 2020, the cash ratio was at its highest point of 0.16, signaling a strong ability to cover short-term obligations with cash reserves. This could indicate a favorable liquidity position for the company at the end of 2020.
However, in 2019, the cash ratio was only 0.03, suggesting a lower level of liquidity and potentially limited ability to cover short-term obligations with cash alone.
In conclusion, the fluctuation in Autonation Inc.'s cash ratio over the past five years reflects varying levels of liquidity and highlights the importance of monitoring cash reserves to ensure the company can meet its short-term commitments.
Peer comparison
Dec 31, 2023