Cash conversion efficiency remains inconsistent, highlighted by a significant operating cash flow to net income ratio of -2.06 in 2025Q2 and a $468.3 million working capital outflow during the same period.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 186.6M | 111.9M | 314.7M | 724M | 1.67B | 1.63B | 1.21B | 769.2M | 511M | 540.1M | 516M | 507.2M | 485.1M | 484.1M | 316.6M | 376.4M | 251.8M | 369.3M | 684.1M | 207.2M | 302.7M | 579.6M | 562M | 481.3M | 619.1M | 540.1M | 204.4M | -227.7M | 395M | -719.2M | -305.6M |
| Operating CF Margin % | - | 0.4% | 1.18% | 2.69% | 6.18% | 6.3% | 5.92% | 3.61% | 2.39% | 2.51% | 2.39% | 2.43% | 2.54% | 2.76% | 2.02% | 2.72% | 2.02% | 3.43% | 4.84% | 1.17% | 1.59% | 3.01% | 2.89% | 2.48% | 3.18% | 2.7% | 0.99% | -1.13% | 2.45% | -11.75% | -12.92% |
| Operating CF Growth % | 318.29% | -64.44% | -56.53% | -56.6% | 2.48% | 34.79% | 56.99% | 50.53% | -5.39% | 4.67% | 1.74% | 4.56% | 0.21% | 52.91% | -15.89% | 49.48% | -31.82% | -46.02% | 230.16% | -31.55% | -47.77% | 3.13% | 16.77% | -22.26% | 14.63% | 164.24% | 189.77% | -157.65% | 154.92% | -135.34% | -181.34% |
| Net Income | 679M | 649.1M | 692.2M | 1.02B | 1.38B | 1.37B | 381.6M | 450M | 396M | 434.6M | 430.5M | 442.6M | 418.7M | 374.9M | 316.4M | 281.4M | 226.6M | 233.1M | -1.21B | 288.7M | 316.9M | 496.5M | 433.6M | 479.2M | 381.6M | 232.3M | 329.9M | 282.9M | 487.9M | 209.7M | 24.9M |
| Depreciation & Amortization | 62.7M | 251.4M | 240.7M | 220.5M | 200.3M | 193.3M | 198.9M | 180.5M | 166.2M | 158.6M | 143.4M | 127.4M | 106.9M | 95.3M | 87.3M | 83.7M | 76.8M | 76.7M | 90.8M | 91.7M | 82.9M | 84.6M | 85.8M | 73.6M | 72.9M | 154.8M | 135.6M | 123.3M | 79.7M | 38.8M | 800.6M |
| Stock-Based Compensation | 11.6M | 46.5M | 36.5M | 39.7M | 31.5M | 35M | 30.2M | 31.1M | 25.5M | 20.6M | 25.1M | 24M | 26.3M | 21.3M | 18.6M | 18.4M | 15.9M | 13.5M | 21M | 15.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 15.4M | 11.2M | -1.4M | 20.1M | 1.3M | -17.4M | -38.9M | 45.8M | 14.5M | -19M | 3.7M | 10M | 9.5M | 9.9M | 26.8M | 31.1M | 12.8M | 59.2M | -267.3M | 10.6M | 17.4M | 32.5M | 0 | 0 | 26.9M | -46.1M | 91.3M | -127.2M | 12.2M | 75.9M | 0 |
| Other Non-Cash Items | 38.8M | 265.1M | 18.2M | 21.9M | 52.8M | -34.2M | 245M | -59.6M | -37.9M | -70.1M | -54.5M | -14.1M | -26.6M | -14.1M | -4.4M | -15.8M | 24.2M | -3.3M | 1.73B | 15.2M | 52.2M | -95.2M | 101.8M | 89M | 65.3M | 76.6M | -275.7M | -596M | 167.1M | -381.5M | -1.17B |
| Working Capital Changes | -728.2M | -1.11B | -671.5M | -599.3M | 4.8M | 78M | 390.8M | 121.4M | -53.3M | 15.4M | -32.2M | -82.7M | -49.7M | -3.2M | -128.1M | -22.4M | -104.5M | -9.9M | 326.7M | -214.3M | -166.7M | 61.2M | -59.2M | -160.5M | 72.4M | 122.5M | -76.7M | 89.3M | -351.9M | -662.1M | 43M |
| Change in Receivables | -625.8M | -1.07B | -903M | -408.1M | -129.2M | 114.9M | 70M | 56.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -127.4M | 0 | 0 | 303.4M | 78.4M | -30.4M | 0 | -10.8M | -10.1M | 18.2M | 74.9M | -86.9M | -79.5M | -400.4M | -125.5M | -94.5M |
| Change in Inventory | -199.1M | 14M | -398.5M | -950.1M | -175.5M | 800.4M | 703.6M | 296M | 0 | 39.3M | 259.1M | 0 | 0 | 0 | 0 | 70.1M | 0 | 0 | 345.7M | 700K | 259.3M | 0 | 217.1M | -388.3M | -366.1M | 544.7M | -37.2M | -380.8M | 66.5M | -207.6M | -21.4M |
| Change in Payables | 277.3M | -4M | 521.1M | 821.5M | 392.2M | -1B | -531.6M | -258.2M | 0 | -63.9M | -202.2M | 525.7M | -19.7M | 400.9M | 0 | 19M | 364.4M | 0 | -68.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -599.8M | -687M | 12.3M | -569.9M | -479.3M | -460.3M | -73.7M | -115.8M | -295.3M | -227M | -493M | -509.4M | -376M | -257.8M | -297.8M | -206.2M | -200.2M | 14M | -75.1M | -90.5M | -308.6M | -41.8M | -330M | -73.6M | -245.2M | -43.5M | 28.5M | 825.6M | 298.7M | 417.9M | -531.3M |
| Capital Expenditures | -290.6M | -309.4M | -328.5M | -410.3M | -329M | -215.7M | -156M | -269.3M | -400.8M | -313.4M | -249.5M | -257.8M | -209.6M | -202.7M | -177.4M | -162.9M | -161.8M | -75.4M | -110.4M | -157.9M | -175.6M | -140.9M | -132.9M | -122.4M | -162.9M | -163.6M | -138.7M | -242.3M | -971.4M | -294.6M | -157.4M |
| CapEx % of Revenue | 1.06% | 1.12% | 1.23% | 1.52% | 1.22% | 0.83% | 0.77% | 1.26% | 1.87% | 1.46% | 1.15% | 1.24% | 1.1% | 1.16% | 1.13% | 1.18% | 1.3% | 0.7% | 0.78% | 0.89% | 0.92% | 0.73% | 0.68% | 0.63% | 0.84% | 0.82% | 0.67% | 1.2% | 6.03% | 4.81% | 6.65% |
| Acquisitions | -41.1M | -443M | 156M | -240.3M | -136.4M | -384M | 8.6M | 110.9M | 106M | 27.8M | -260M | -277.6M | -163.8M | -77.8M | -134.8M | -59.3M | -60.1M | 65.7M | 17.4M | 48.4M | -142.7M | 39.1M | -195M | -48.8M | -166.5M | -92M | -313.3M | -914M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -256.6M | 65.4M | 88.8M | 79.3M | -3.7M | 35.5M | 18.3M | 42.6M | 49.5M | 58.6M | 16.5M | 26M | -3.1M | 22.7M | 14M | 16M | 20.4M | 18.6M | 6.9M | 9.9M | 2.8M | 70.5M | -6.9M | 45.1M | -75.7M | 366.6M | 389.6M | 1.95B | 1.37B | 610.2M | -416.2M |
| Cash from Financing | 409.7M | 557.5M | -300.6M | -172.5M | -1.15B | -1.68B | -606.7M | -660.3M | -237.4M | -307.4M | -35.6M | 900K | -102.9M | -226.8M | -35.7M | -178.7M | -130M | -319.9M | -532.3M | -136.4M | -188.1M | -403.1M | -300.5M | -415.7M | -327M | -453.1M | -386.5M | -1.09B | -49M | 85.8M | 823.8M |
| Debt Issued (Net) | 957.2M | 1.38B | 179.8M | 734M | 580.5M | 613.2M | -273.1M | -625.3M | -150M | 102.4M | 469.6M | 196.7M | 337.7M | -185.9M | 505.3M | 313.3M | 352.8M | -41M | -462.8M | 395.3M | 1.11B | -278.1M | -13.8M | 170.4M | -4M | -205.3M | -251M | 41.2M | 54.8M | -475.2M | 385.7M |
| Equity Issued (Net) | -141.1M | -790.9M | -460M | -874.4M | -1.7B | -2.32B | -367.2M | -44.7M | -100M | -434.9M | -512.2M | -237.3M | -487.7M | -67.3M | -575.6M | -579.8M | -524.4M | -136.1M | -58.8M | -644.2M | -1.3B | -124.3M | -142.6M | -457.1M | -311.2M | -256.8M | -188.9M | -1.16B | -136M | 552.7M | 550.9M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -442.2M | -791.6M | -460M | -874.4M | -1.7B | -2.32B | -367.2M | -44.7M | -100M | -434.9M | -512.2M | -237.3M | -487.7M | -67.3M | -575.6M | -579.8M | -524.4M | -136.1M | -58.8M | -644.2M | -1.38B | -237.1M | -236.8M | -575.2M | -389.9M | -256.8M | -188.9M | -1.16B | -136M | 0 | 0 |
| Other Financing | -406.4M | -35.8M | -20.4M | -32.1M | -35M | 28.5M | 33.6M | 9.7M | 12.6M | 25.1M | 7M | 41.5M | 47.1M | 26.4M | 34.6M | 87.8M | 41.6M | -142.8M | -10.7M | 112.5M | 9.8M | -700K | -144.1M | -129M | -11.8M | 9M | 53.4M | 29M | 32.2M | 8.3M | -112.8M |
| Net Change in Cash | -3.5M | -17.6M | 26.4M | -18.4M | 34.8M | -509.1M | 527.2M | -6.9M | -21.7M | 5.7M | -12.6M | -1.3M | 6.2M | -500K | -16.9M | -8.5M | -78.4M | 63.4M | 76.8M | -19.7M | -194M | 134.6M | -68.5M | -8M | 46.9M | 43.5M | -153.6M | -489.9M | 644.7M | -215.5M | -357.8M |
| Free Cash Flow | -104M | -197.5M | -13.8M | 313.7M | 1.34B | 1.41B | 1.05B | 499.9M | 110.2M | 226.7M | 266.5M | 249.4M | 275.5M | 281.4M | 139.2M | 213.5M | 90M | 293.9M | 573.7M | 47.5M | 127.1M | 438.7M | 429.1M | 358.9M | 456.2M | 376.5M | 65.7M | -470M | -576.4M | -1.01B | -463M |
| FCF Margin % | -0.38% | -0.71% | -0.05% | 1.16% | 4.96% | 5.46% | 5.16% | 2.34% | 0.51% | 1.05% | 1.23% | 1.2% | 1.44% | 1.61% | 0.89% | 1.54% | 0.72% | 2.73% | 4.06% | 0.27% | 0.67% | 2.28% | 2.21% | 1.85% | 2.34% | 1.88% | 0.32% | -2.34% | -3.58% | -16.56% | -19.57% |
| FCF Growth % | 69.62% | -1331.16% | -104.4% | -76.57% | -5.16% | 34.27% | 110.36% | 353.63% | -51.39% | -14.93% | 6.86% | -9.47% | -2.1% | 102.16% | -34.8% | 137.22% | -69.38% | -48.77% | 1107.79% | -62.63% | -71.03% | 2.24% | 19.56% | -21.33% | 21.17% | 473.06% | 113.98% | 18.46% | 43.14% | -118.96% | 61% |
| FCF per Share | -3.00 | -5.18 | -0.34 | 6.99 | 23.62 | 18.83 | 11.86 | 5.52 | 1.21 | 2.31 | 2.57 | 2.19 | 2.32 | 2.28 | 1.11 | 1.45 | 0.57 | 1.67 | 3.23 | 0.24 | 0.55 | 1.64 | 1.57 | 1.25 | 1.42 | 1.12 | 0.18 | -1.09 | -1.22 | -2.35 | -1.38 |
| FCF Conversion (FCF/Net Income) | -0.15x | 0.17x | 0.45x | 0.71x | 1.21x | 1.19x | 3.16x | 1.71x | 1.29x | 1.24x | 1.20x | 1.15x | 1.16x | 1.29x | 1.00x | 1.34x | 1.11x | 1.87x | -0.55x | 0.74x | 0.96x | 1.17x | 1.30x | 1.00x | 1.62x | 2.33x | 0.62x | -0.80x | 0.79x | -1.64x | 45.61x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
High debt and inventory volatility
According to the provided cash flow data, AutoNation's operating cash flow to net income ratio has frequently dipped into negative territory, most notably reaching -2.06 in 2025Q2, which suggests a significant disconnect between reported accounting profits and the actual cash generated from core dealership operations.
The persistent gap between net income and operating cash flow indicates that earnings are heavily reliant on non-cash adjustments or accruals that do not translate into immediate liquidity. Investors should monitor whether this divergence stems from aggressive inventory capitalization or delayed cash collection cycles, as it raises questions regarding the sustainability of reported profitability.
As reported in financial statements, AutoNation's free cash flow trajectory has been highly erratic, swinging from a positive $200.8 million in 2024Q1 to a deficit of $256.8 million in 2025Q2, reflecting the company's struggle to maintain consistent cash generation amidst a normalizing automotive retail environment.
The inability to maintain positive free cash flow margins suggests that the company's capital requirements often outpace its operational cash generation. This inconsistency may force management to rely on external financing to fund ongoing operations and share repurchases, potentially exacerbating the company's already elevated debt profile.
Based on the company's reported figures, working capital changes have been a consistent drag on cash flow, with a massive $468.3 million outflow in 2025Q2 alone, indicating that inventory accumulation and management are consuming significant liquidity that would otherwise be available for debt reduction or shareholder returns.
The recurring negative working capital adjustments suggest that AutoNation is struggling to optimize its inventory turnover in a softening demand environment. This trend warrants further investigation into whether the company is over-stocking vehicles to meet OEM targets at the expense of its own cash flow health.
Data from recent filings reveals that AutoNation continues to prioritize share repurchases, such as the $361.8 million spent in 2025Q4, even during periods where operating cash flow is insufficient to cover capital expenditures, suggesting a capital allocation strategy that may be prioritizing short-term EPS support over balance sheet resilience.
The decision to return capital to shareholders while simultaneously facing volatile cash flows and high debt levels appears to be a high-risk strategy. This approach may limit the company's ability to pivot or invest in its 'AutoNation USA' expansion if credit conditions tighten further.
Quick answers to the most common questions about buying AN stock.
AutoNation, Inc. (AN) generated $111.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
AutoNation, Inc. (AN) reported negative free cash flow of $197.5M in 2025, indicating capital requirements exceeded cash from operations.
AutoNation, Inc. (AN) spent $309.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, AutoNation, Inc. (AN) spent $791.6M on share repurchases. This shows the company's commitment to returning capital to its equity investors.