Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. AutoNation's Average Total Inventories for the quarter that ended in Dec. 2023 was $2,840 Mil. AutoNation's Revenue for the
three
months ended in Dec. 2023 was $6,767 Mil.
AutoNation's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.42.
AutoNation's Inventory-to-Revenue for the quarter that ended in Dec. 2023
increased
from Sep. 2023 (0.38) to Sep. 2023 (0.42)
An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:
1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.
Days Inventory indicates the number of days of goods in sales that a company has in the inventory.
AutoNation's Days Inventory for the
three
months ended in Dec. 2023 was 46.67.
Inventory Turnover measures how fast the company turns over its inventory within a year.
AutoNation's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.96.
AutoNation Inventory-to-Revenue Historical Data
The historical data trend for AutoNation's Inventory-to-Revenue can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of AutoNation's Inventory-to-Revenue
For the Auto & Truck Dealerships subindustry, AutoNation's Inventory-to-Revenue, along with its competitors' market caps and Inventory-to-Revenue data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
AutoNation's Inventory-to-Revenue Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, AutoNation's Inventory-to-Revenue distribution charts can be found below:
* The bar in red indicates where AutoNation's Inventory-to-Revenue falls into.
AutoNation Inventory-to-Revenue Calculation
Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.
AutoNation's Inventory-to-Revenue for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:
1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.
Likewise, a decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:
1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the Inventory-to-Revenue, either one suggests that business's inventory levels and its cash flow are effectively managed.
More Related Terms:
1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.
AutoNation's Days Inventory for the
three
months ended in Dec. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
AutoNation Inventory-to-Revenue Related Terms
Thank you for viewing the detailed overview of AutoNation's Inventory-to-Revenue provided by GuruFocus.com. Please click on the following links to see related term pages.
AutoNation is the second largest automotive dealer in the United States, with 2022 revenue of $27 billion and over 250 dealerships, plus 53 collision centers. The firm also has 16 AutoNation USA used-vehicle stores, a captive lender, four auction sites, and three parts distributors all across 20 states primarily in Sunbelt metropolitan areas. New-vehicle sales account for nearly half of revenue; the company also sells used vehicles, parts, and repair services as well as auto financing. The company (formerly Republic Industries) spun off its waste management unit (Republic Services) in 1999 and its car rental businesses (ANC Rental) in 2000. Wayne Huizenga founded the company in the 1990s to bring the rollup acquisition strategy to auto retailing, which has proved to be a smart move.
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