AutoNation Inc (AN)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,355,100 | 1,652,400 | 1,968,400 | 1,901,400 | 643,800 |
| Interest expense | US$ in thousands | 438,400 | 326,100 | 176,300 | 118,700 | 157,500 |
| Interest coverage | 3.09 | 5.07 | 11.17 | 16.02 | 4.09 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,355,100K ÷ $438,400K
= 3.09
AutoNation Inc's interest coverage ratio has shown fluctuating trends over the past five years. Starting at 4.09 in 2020, it increased significantly to 16.02 in 2021, indicating a strong ability to cover interest expenses. Subsequently, in 2022, the ratio decreased to 11.17 but remained at a healthy level. However, in 2023, the interest coverage ratio dropped to 5.07, signaling a potential decrease in the company's ability to cover interest payments. This trend continued in 2024 with a further decline to 3.09, suggesting a heightened risk for the company in meeting its interest obligations. Overall, while AutoNation Inc's interest coverage has seen fluctuations, it is essential for the company to closely monitor and manage its ability to cover interest expenses to maintain financial stability.
Peer comparison
Dec 31, 2024