AutoNation Inc (AN)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 60,800 | 64,000 | 63,700 | 58,300 | 72,600 | 442,900 | 336,500 | 608,100 | 60,400 | 72,000 | 59,500 | 350,000 | 569,600 | 350,500 | 257,300 | 411,000 | 42,000 | 45,000 | 51,100 | 48,700 |
| Short-term investments | US$ in thousands | 22,800 | — | — | — | 15,400 | — | — | — | 2,200 | — | — | — | 101,900 | 288,500 | 290,500 | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 5,582,500 | 4,531,800 | 4,407,000 | 3,780,800 | 3,405,700 | 2,935,400 | 2,780,000 | 2,804,600 | 3,059,800 | 2,427,200 | 3,040,700 | 3,609,200 | 4,165,900 | 3,710,600 | 3,821,300 | 4,995,800 | 5,100,200 | 5,195,000 | 5,590,300 | 5,898,500 |
| Cash ratio | 0.01 | 0.01 | 0.01 | 0.02 | 0.03 | 0.15 | 0.12 | 0.22 | 0.02 | 0.03 | 0.02 | 0.10 | 0.16 | 0.17 | 0.14 | 0.08 | 0.01 | 0.01 | 0.01 | 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 measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position.
Autonation Inc.'s cash ratio has shown a declining trend over the past eight quarters, decreasing from 0.29 in Q1 2022 to 0.04 in Q4 2023. This suggests a decrease in the company's ability to meet its short-term obligations solely from its cash reserves.
The most significant drop occurred between Q2 2022 and Q3 2022, where the cash ratio decreased from 0.19 to 0.20. From then on, the ratio has steadily decreased, reaching its lowest point in Q4 2023.
The low cash ratio may indicate that Autonation Inc. is becoming increasingly reliant on other sources of liquidity, such as accounts receivables or short-term borrowing, to meet its short-term obligations. This could potentially signal a risk if the company faces unexpected cash flow challenges in the future.
It would be advisable for Autonation Inc. to monitor and manage its cash flow effectively to improve its cash ratio and enhance its overall liquidity position.
Peer comparison
Dec 31, 2023