AutoNation Inc (AN)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 59,800 | 60,800 | 72,600 | 60,400 | 569,600 |
| Short-term investments | US$ in thousands | — | 328,000 | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 6,312,200 | 5,582,500 | 3,405,700 | 3,059,800 | 4,165,900 |
| Quick ratio | 0.01 | 0.07 | 0.02 | 0.02 | 0.14 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($59,800K
+ $—K
+ $—K)
÷ $6,312,200K
= 0.01
The quick ratio of AutoNation Inc, a key liquidity ratio representing the company's ability to meet its short-term obligations with its most liquid assets, has shown significant fluctuations over the years based on the provided data.
As of December 31, 2020, the quick ratio was 0.14, indicating that AutoNation had $0.14 of liquid assets available for every $1 of current liabilities, reflecting a relatively strong liquidity position. However, there was a substantial decrease in the quick ratio to 0.02 by the end of both 2021 and 2022, suggesting a significant decline in the company's ability to cover its short-term obligations with its quick assets.
By the end of December 31, 2023, the quick ratio improved to 0.07, signaling a slight recovery in liquidity compared to the previous year. Nevertheless, the quick ratio dropped once again to 0.01 by December 31, 2024, indicating a notable decrease in the ability of AutoNation to meet its short-term financial commitments with its liquid assets.
Overall, based on the data provided, AutoNation Inc has experienced volatility in its quick ratio over the years, with fluctuations impacting the company's short-term liquidity position and ability to fulfill its immediate financial obligations effectively.
Peer comparison
Dec 31, 2024