AutoNation Inc (AN)

Liquidity ratios

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
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
Quick ratio 0.20 0.21 0.21 0.21 0.28 0.37 0.37 0.48 0.26 0.29 0.27 0.34 0.36 0.36 0.32 0.18 0.19 0.17 0.15 0.14
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

Autonation Inc.'s liquidity ratios for the fourth quarter of 2023 indicate a decline in overall liquidity compared to the previous quarters. The current ratio has decreased to 0.77, signifying that the company may have difficulties meeting its short-term obligations with its current assets. The quick ratio, a more stringent measure of liquidity, stands at 0.22, indicating the company's ability to meet immediate short-term liabilities with its most liquid assets has weakened.

Furthermore, the cash ratio is at 0.04, reflecting a significant decline in the company's ability to cover its current liabilities using only cash and cash equivalents. The decreasing trend in these ratios suggests that Autonation Inc. may be facing challenges in managing its short-term financial obligations efficiently.

Overall, these liquidity ratios indicate that Autonation Inc. may need to pay closer attention to its liquidity management strategies to ensure it can meet its short-term financial commitments effectively. Investors and stakeholders may want to monitor these ratios closely to assess the company's ability to weather potential liquidity risks in the future.


Additional liquidity measure

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 conversion cycle days 59.07 50.70 48.69 41.74 40.53 34.34 35.95 32.55 35.68 29.56 36.86 52.58 64.23 59.15 59.27 80.76 77.47 76.34 80.81 85.61

The cash conversion cycle of Autonation Inc. has shown a gradual increase over the past eight quarters, indicating a lengthening period of time required to convert its invested resources into cash. In Q1 2022, the company had a relatively low cash conversion cycle of 32.55 days, which increased to 40.53 days in Q4 2022. This trend continued in 2023, with the cycle reaching 59.07 days in Q4 2023.

A longer cash conversion cycle suggests that Autonation Inc. takes more time to sell its inventory, collect receivables, and pay its suppliers. This could potentially impact the company's liquidity and working capital management.

It is essential for Autonation Inc. to monitor and manage its cash conversion cycle effectively to ensure optimal utilization of its resources and maintain healthy cash flow levels. Further analysis and strategic adjustments may be necessary to address the increasing trend in the cash conversion cycle and improve overall financial performance.