Asbury Automotive Group Inc (ABG)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		6.81	12.86	11.05	6.75	6.13
DOH	days	53.58	28.39	33.04	54.07	59.51

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.81
= 53.58

The days of inventory on hand (DOH) ratio for Asbury Automotive Group Inc has fluctuated over the past five years. In 2019, the company held inventory for an average of 59.51 days, which decreased to 54.07 days in 2020. This reduction suggests an improvement in inventory turnover efficiency. However, there was a notable increase in DOH to 33.04 days in 2021, indicating a longer period of time the company took to sell its inventory.

The most significant change occurred in 2022 when the DOH ratio significantly decreased to 28.39 days, demonstrating a substantial improvement in inventory management efficiency. This positive trend continued in 2023 with a DOH of 53.58 days, suggesting a slight increase in the time taken to sell inventory compared to the previous year but remaining significantly lower than 2021.

Overall, the fluctuation in Asbury Automotive's DOH ratio indicates varying levels of efficiency in managing inventory over the years, with a significant improvement in 2022 followed by a slight increase in 2023. Further analysis of the company's inventory turnover and sales trends would provide a more comprehensive understanding of its inventory management performance.