AutoNation Inc (AN)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 5.29 | 5.44 | 5.88 | 5.10 | 5.59 | 5.25 | 5.30 | 5.13 | 4.91 | 4.17 | 4.00 | 3.99 | 3.76 | 3.45 | 2.93 | 2.90 | 3.06 | 2.85 | 3.01 | 3.71 |
AutoNation Inc has shown a strong solvency position based on the solvency ratios analyzed. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have consistently remained at 0.00 over the past years, indicating that the company's total debt is either extremely low or non-existent in relation to its total assets, capital, and equity. This suggests that the company is not relying heavily on debt to finance its operations.
The Financial leverage ratio, on the other hand, has shown an increasing trend over the years, starting at 3.71 in March 2020 and reaching 5.29 by December 2024. This indicates that the company's reliance on debt to finance its operations has been gradually increasing. However, the ratio is still within a reasonable range and does not raise immediate concerns about the company's ability to meet its debt obligations.
Overall, the solvency ratios suggest that AutoNation Inc is in a stable financial position with low debt levels in relation to its assets, capital, and equity. The increasing financial leverage ratio should be monitored to ensure that the company's debt levels remain manageable and sustainable in the long term.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.86 | 3.46 | 3.72 | 4.61 | 5.48 | 5.57 | 7.06 | 9.00 | 11.23 | 13.92 | 15.43 | 16.89 | 16.02 | 13.12 | 10.72 | 8.84 | 4.09 | 3.70 | 2.73 | 1.40 |
The interest coverage ratio for AutoNation Inc shows a general upward trend from March 31, 2020, to September 30, 2021, indicating an improving ability to cover interest payments with operating profits. The ratio increased from 1.40 in March 2020 to 13.12 in September 2021, peaking at 16.89 in March 2022. This suggests that the company had a strong ability to cover its interest obligations multiple times over.
However, after March 2022, the interest coverage ratio started to decline gradually, reaching 2.86 by December 31, 2024. This downward trend may signal a potential decrease in the company's ability to cover interest expenses. A declining interest coverage ratio could indicate an increased risk of default on debt obligations if the trend continues.
It is vital for investors and creditors to closely monitor AutoNation Inc's interest coverage ratio to ensure the company maintains a healthy level of profitability relative to its interest expenses and to assess its overall financial health and risk profile.