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.
Peer comparison
Dec 31, 2023