Asbury Automotive Group Inc (ABG)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		65.47	89.78	42.81	45.86	52.94
DSO	days	5.58	4.07	8.53	7.96	6.89

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 65.47
= 5.58

Asbury Automotive Group Inc's Days Sales Outstanding (DSO) is a ratio that measures the average number of days it takes for the company to collect revenue from its sales. A lower DSO indicates that the company is collecting its accounts receivable more quickly, which is generally positive for cash flow and liquidity.

From the provided data, we can observe fluctuations in Asbury Automotive Group Inc's DSO over the past five years:

- In 2023, the DSO increased to 5.58 days from 4.07 days in 2022. This suggests that the company took longer to collect its accounts receivable in 2023 compared to 2022.
- In 2022, the DSO decreased to 4.07 days from 8.53 days in 2021. This significant improvement indicates a more efficient collection of revenue in 2022.
- In 2021, the DSO increased to 8.53 days from 7.96 days in 2020. This increase suggests a slight delay in collecting accounts receivable in 2021.
- In 2020, the DSO was 7.96 days, showing a slight increase from 6.89 days in 2019. This indicates a slightly longer collection period in 2020 compared to 2019.
- In 2019, the DSO was 6.89 days, showing a relatively stable collection period for accounts receivable.

Overall, Asbury Automotive Group Inc's DSO has exhibited some variability over the past five years, with fluctuations in the efficiency of collecting revenue from sales. It is essential for the company to monitor and manage its DSO effectively to ensure optimal cash flow and financial health.