AutoNation Inc (AN)

Current ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total current assets US$ in thousands 4,698,000 4,306,900 3,138,000 2,811,700 4,152,700
Total current liabilities US$ in thousands 6,312,200 5,582,500 3,405,700 3,059,800 4,165,900
Current ratio 0.74 0.77 0.92 0.92 1.00

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $4,698,000K ÷ $6,312,200K
= 0.74

AutoNation Inc's current ratio has shown a declining trend over the past five years, falling from 1.00 in December 31, 2020, to 0.74 in December 31, 2024. This indicates a decrease in its ability to meet short-term obligations with current assets. A current ratio below 1 may signal potential liquidity issues, as the company may have difficulty covering its current liabilities with its current assets. AutoNation Inc should closely monitor and manage its current assets and liabilities to improve its liquidity position in the future.