AutoNation Inc (AN)

Current 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
Total current assets	US$ in thousands	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	4,411,100	4,398,800	4,663,600	4,831,800
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
Current ratio		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	0.86	0.85	0.83	0.82

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $4,306,900K ÷ $5,582,500K
= 0.77

The current ratio of Autonation Inc. has been gradually decreasing over the past eight quarters. In the most recent quarter (Q4 2023), the current ratio stands at 0.77, indicating that the company may have difficulties meeting its short-term obligations with its current assets. Comparing this to the ratios from the previous quarters, there is a downward trend in the current ratio, with Q1 2022 at the highest level of 1.16.

A current ratio below 1 suggests that Autonation Inc. may be facing liquidity issues and may struggle to cover its short-term liabilities with its current assets. It may be prudent for investors and analysts to closely monitor the company's liquidity position and assess its ability to manage short-term financial obligations effectively. Further analysis and investigation into the company's working capital management practices and financial health may be warranted.