Asbury Automotive Group Inc (ABG)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	14,240,000	12,046,900	12,333,300	7,935,500	5,908,400
Inventory	US$ in thousands	1,978,800	1,768,300	959,200	718,400	875,200
Inventory turnover		7.20	6.81	12.86	11.05	6.75

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $14,240,000K ÷ $1,978,800K
= 7.20

Asbury Automotive Group Inc's inventory turnover has displayed fluctuating trends over the past five years. In December 2020, the inventory turnover stood at 6.75, indicating that the company's inventory was sold and replaced approximately 6.75 times during that year.

Subsequently, there was a notable increase in inventory turnover to 11.05 by December 2021, suggesting a more efficient management of inventory where the company's inventory turnover improved significantly.

The trend continued to improve in December 2022, reaching a level of 12.86, which indicates that Asbury Automotive Group Inc was able to turn over its inventory more than 12 times during that year, reflecting strong sales and inventory management practices.

However, there was a decline in inventory turnover in December 2023 to 6.81, although it still remained above the initial value in 2020. This decline may suggest challenges in efficiently managing inventory or changing market conditions.

By December 2024, the inventory turnover slightly increased to 7.20, indicating a slight improvement in inventory management efficiency compared to the previous year.

Overall, while there have been fluctuations in Asbury Automotive Group Inc's inventory turnover over the five-year period, the company has shown some effectiveness in managing its inventory levels and operational processes. Further analysis and correlation with other financial metrics would provide a more comprehensive understanding of the company's performance and financial health.