Asbury Automotive Group Inc (ABG)

Days of inventory on hand (DOH)

		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
DOH	days	50.72	53.58	28.39	33.04	54.07

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.20
= 50.72

The days of inventory on hand (DOH) for Asbury Automotive Group Inc has shown some fluctuation over the five-year period from 2020 to 2024. In 2020, the DOH was 54.07 days, indicating that, on average, the company held inventory for around 54 days before selling it. Subsequently, in 2021, the DOH decreased to 33.04 days, suggesting an improvement in inventory turnover efficiency as the company managed to reduce the number of days it held inventory.

By the end of 2022, the DOH further decreased to 28.39 days, indicating continued efficiency in managing inventory levels. However, in 2023, there was a notable increase in the DOH to 53.58 days, signifying that the company held inventory for a longer period compared to the previous year. This increase may raise concerns about potential overstocking or slowing sales.

In 2024, the DOH slightly decreased to 50.72 days compared to the previous year but remained higher than the levels seen in 2022 and 2023. Overall, it is essential for the company to closely monitor its inventory management practices to ensure optimal levels that support sales and profitability while minimizing the risk of excess inventory buildup.