AutoNation Inc (AN)

Quick 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
Cash	US$ in thousands	60,800	64,000	63,700	58,300	72,600	442,900	336,500	608,100	60,400	72,000	59,500	350,000	569,600	350,500	257,300	411,000	42,000	45,000	51,100	48,700
Short-term investments	US$ in thousands	22,800	—	—	—	15,400	—	—	—	2,200	—	—	—	101,900	288,500	290,500	—	—	—	—	—
Receivables	US$ in thousands	1,040,400	877,300	842,300	742,700	858,800	649,400	705,400	747,900	730,000	628,100	773,500	883,500	845,200	682,500	673,300	512,900	916,700	829,500	780,800	782,700
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
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

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 is a measurement of a company's ability to meet its short-term obligations using its most liquid assets. A quick ratio of 1 or higher is typically considered healthy, indicating that a company can cover its current liabilities with its quick assets, such as cash, marketable securities, and accounts receivable.

Autonation Inc.'s quick ratio has been decreasing over the past eight quarters, from 0.55 in Q1 2022 to 0.22 in Q4 2023. This downward trend suggests that the company may be facing challenges in meeting its short-term obligations with its current liquid assets. A quick ratio below 1 may raise concerns about the company's liquidity and ability to pay its debts as they come due.

It's important for investors and analysts to closely monitor Autonation Inc.'s quick ratio and assess the company's liquidity position in relation to its current liabilities. The declining trend in the quick ratio should prompt further investigation into the company's financial health and risk management strategies.