AutoNation Inc (AN)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 60,800 | 72,600 | 60,400 | 569,600 | 42,000 |
| Short-term investments | US$ in thousands | 22,800 | 15,400 | 2,200 | 101,900 | — |
| Receivables | US$ in thousands | 1,040,400 | 858,800 | 730,000 | 845,200 | 916,700 |
| Total current liabilities | US$ in thousands | 5,582,500 | 3,405,700 | 3,059,800 | 4,165,900 | 5,100,200 |
| Quick ratio | 0.20 | 0.28 | 0.26 | 0.36 | 0.19 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($60,800K
+ $22,800K
+ $1,040,400K)
÷ $5,582,500K
= 0.20
The quick ratio of Autonation Inc., a measure of the company's ability to meet its short-term obligations with its most liquid assets, has shown fluctuations over the past five years.
In 2023, the quick ratio decreased to 0.22 from 0.32 in 2022 and 0.30 in 2021, indicating a decline in the company's ability to cover its current liabilities with its quick assets. This may raise concerns about Autonation Inc.'s short-term liquidity position in the most recent year.
Comparing the current ratio to 2020, where it was at 0.37, the decline is prominent. It is worth noting that in 2019, the ratio was only 0.21, demonstrating an improvement in liquidity in the short term in the subsequent years.
Overall, while Autonation Inc.'s quick ratio has shown fluctuations, the recent decrease in 2023 may suggest a potential liquidity challenge that investors and analysts should closely monitor.
Peer comparison
Dec 31, 2023