AutoNation Inc (AN)
Current ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 4,698,000 | 4,749,500 | 4,851,400 | 4,241,900 | 4,306,900 | 3,773,100 | 3,639,800 | 3,153,000 | 3,138,000 | 3,075,000 | 3,131,300 | 3,249,600 | 2,811,700 | 2,374,400 | 2,801,900 | 3,666,800 | 4,152,700 | 3,654,900 | 3,520,200 | 4,748,600 |
| Total current liabilities | US$ in thousands | 6,312,200 | 5,960,400 | 6,217,100 | 5,384,300 | 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 |
| Current ratio | 0.74 | 0.80 | 0.78 | 0.79 | 0.77 | 0.83 | 0.83 | 0.83 | 0.92 | 1.05 | 1.13 | 1.16 | 0.92 | 0.98 | 0.92 | 1.02 | 1.00 | 0.98 | 0.92 | 0.95 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,698,000K ÷ $6,312,200K
= 0.74
The current ratio measures a company's ability to cover its short-term obligations with its short-term assets. A ratio above 1 indicates that a company has more current assets than current liabilities, which is generally seen as a positive sign.
Looking at AutoNation Inc's current ratio over the past few years, we observe fluctuations in its liquidity position. The ratio was below 1 for several quarters, indicating that the company may have had difficulties meeting its short-term obligations with its current assets during those periods.
However, the current ratio improved significantly in the recent quarters, exceeding 1. This suggests that AutoNation Inc has strengthened its liquidity position and now has more current assets to cover its current liabilities, which is beneficial for its financial health and operational stability.
Overall, while there have been fluctuations in the current ratio, the recent trend of improvement indicates a positive development in AutoNation Inc's ability to meet its short-term obligations using its current assets. Investors and stakeholders may find this trend reassuring as it signals a stronger financial position for the company.
Peer comparison
Dec 31, 2024