Asbury Automotive Group Inc (ABG)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 7.20 | 6.81 | 12.86 | 11.05 | 6.75 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 56.99 | 81.60 | 17.61 | 29.69 | 39.12 |
Asbury Automotive Group Inc's inventory turnover has shown variability over the years, with values ranging from 6.75 to 12.86. The trend indicates an improvement in inventory management efficiency from 2020 to 2022, followed by a slight decrease in 2023 and a moderate increase in 2024. Higher values suggest that the company is turning over its inventory more frequently, which can be a positive sign of effective inventory management.
The receivables turnover ratio data is missing, indicating that the company may not provide a clear picture of how quickly it collects its accounts receivable. This lack of data makes it challenging to assess the efficiency of the company's accounts receivable management.
Similarly, information on payables turnover is not available for analysis, which hinders the evaluation of the company's payment practices to its suppliers.
The working capital turnover ratio has fluctuated significantly over the years, ranging from 17.61 to 81.60. This ratio measures how efficiently the company utilizes its working capital to generate sales revenue. The notable fluctuations in this ratio may indicate changes in the company's working capital management and efficiency in generating sales relative to its working capital.
Overall, while the inventory turnover and working capital turnover ratios provide some insights into Asbury Automotive Group Inc's operational efficiency, the lack of data for receivables and payables turnover ratios limits a comprehensive analysis of the company's activity ratios.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 50.72 | 53.58 | 28.39 | 33.04 | 54.07 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
The activity ratios for Asbury Automotive Group Inc can provide insights into its efficiency in managing inventory, collecting receivables, and paying off its payables.
1. Days of Inventory on Hand (DOH):
- Asbury Automotive Group Inc's DOH has shown a decreasing trend over the years, from 54.07 days on December 31, 2020, to 28.39 days on December 31, 2022. This indicates that the company has been able to sell its inventory faster, which is a positive sign of efficient inventory management. However, there was a slight increase in DOH in 2023 and 2024, suggesting a potential buildup of inventory or slower sales.
2. Days of Sales Outstanding (DSO):
- The data provided does not include information on Days of Sales Outstanding (DSO), which typically measures the average number of days it takes for a company to collect payment after a sale. Without this information, it is challenging to assess Asbury Automotive Group Inc's efficiency in collecting receivables.
3. Number of Days of Payables:
- Similarly, the data does not include details on the Number of Days of Payables, which reflects how long it takes a company to pay its suppliers. Without this information, we cannot evaluate the company's payment practices and liquidity management related to payables.
In conclusion, based on the available data, Asbury Automotive Group Inc appears to have effectively reduced its inventory turnover time over the years, but additional data on DSO and payables would provide a more holistic view of the company's overall activity and efficiency levels.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 7.95 | 4.94 | 7.46 |
| Total asset turnover | 1.66 | 1.46 | 1.92 | 1.23 | 1.94 |
Asbury Automotive Group Inc's Fixed Asset Turnover ratio measures the efficiency with which the company generates revenue from its fixed assets. The trend indicates a decline from 7.46 in 2020 to 4.94 in 2021, followed by a significant increase to 7.95 in 2022. However, the absence of data for 2023 and 2024 limits a complete trend analysis. A high Fixed Asset Turnover ratio suggests that the company is effectively utilizing its fixed assets to generate sales.
Total Asset Turnover ratio reflects the company's ability to generate sales from its total assets. Asbury Automotive Group Inc's ratio decreased from 1.94 in 2020 to 1.23 in 2021, then increased to 1.92 in 2022, but decreased again to 1.46 in 2023 before rising to 1.66 in 2024. The fluctuations in this ratio indicate varying levels of revenue generation efficiency from total assets over the years.
In conclusion, while the Fixed Asset Turnover ratio exhibited significant fluctuations, the Total Asset Turnover ratio showed a more consistent trend of improvement, signaling potential improvements in the company's ability to generate revenue from its assets over time. It is essential for Asbury Automotive Group Inc to continue monitoring these ratios to ensure optimal asset utilization and overall operational efficiency.