Asbury Automotive Group Inc (ABG)

Days of inventory on hand (DOH)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		6.81	9.56	9.99	11.19	12.86	13.96	13.16	13.19	11.05	18.57	12.97	8.29	6.75	6.80	8.92	5.65	6.13	5.78	5.34	4.98
DOH	days	53.58	38.17	36.53	32.62	28.39	26.15	27.74	27.68	33.04	19.65	28.13	44.00	54.07	53.64	40.91	64.63	59.51	63.18	68.31	73.25

December 31, 2023 calculation

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

To analyze Asbury Automotive Group Inc's days of inventory on hand (DOH) over the past eight quarters, we observe a consistent upward trend in the number of days it takes the company to sell its inventory. The DOH has steadily increased from 27.68 days in Q1 2022 to 53.58 days in Q4 2023.

This indicates that Asbury Automotive Group Inc has been holding onto its inventory for longer periods, which can tie up capital and impact liquidity. A rising DOH may suggest issues with inventory management, such as overstocking, slowing sales, or inefficiencies in the supply chain.

It would be crucial for the company to closely monitor and address this trend to optimize inventory levels, improve cash flow, and enhance overall operational efficiency. Further analysis in conjunction with other financial metrics would be beneficial to identify the root causes of the increasing DOH and implement strategic changes accordingly.