Asbury Automotive Group Inc (ABG)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover		7.22	6.74	6.37	6.79	6.82	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
DOH	days	50.52	54.12	57.34	53.76	53.50	38.18	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

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.22
= 50.52

The Days of Inventory on Hand (DOH) ratio for Asbury Automotive Group Inc has shown some fluctuations over the disclosed periods.

From March 31, 2020, to June 30, 2021, the DOH ratio decreased consistently, indicating that the company was managing its inventory efficiently and selling off its inventory at a faster rate. This may reflect effective inventory management practices or strong sales performance during this period.

However, from September 30, 2021, to December 31, 2024, the DOH ratio showed an increasing trend. This could suggest that Asbury Automotive Group Inc may be holding onto its inventory for longer periods or facing challenges in selling inventory promptly. A rising DOH ratio may be a concern as it ties up capital in unsold inventory, potentially leading to increased holding costs or risks associated with obsolescence.

Overall, monitoring the DOH ratio is crucial for the company to assess its inventory management efficiency, identify any potential issues, and take necessary actions to optimize inventory levels and turnover to enhance profitability and liquidity.