Asbury Automotive Group Inc (ABG)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	12,046,900	11,876,100	11,981,500	12,099,500	12,333,200	11,477,800	10,305,800	9,245,200	7,935,600	7,684,800	7,268,200	6,383,700	5,908,400	5,639,100	5,678,500	5,984,700	6,041,400	5,951,400	5,881,900	5,819,200
Inventory	US$ in thousands	1,768,300	1,242,100	1,199,200	1,081,400	959,200	822,200	783,200	701,100	718,400	413,800	560,200	769,600	875,200	828,700	636,400	1,059,700	985,000	1,030,100	1,100,800	1,167,800
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

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $12,046,900K ÷ $1,768,300K
= 6.81

Asbury Automotive Group Inc's inventory turnover has shown a decreasing trend over the past few quarters. The company's inventory turnover ratio was 6.81 in Q4 2023, down from 9.56 in Q3 2023, indicating that the company took longer to sell its inventory in the most recent quarter. This declining trend is also evident when comparing to the previous year, where the inventory turnover was higher, with a ratio of 12.86 in Q4 2022.

A lower inventory turnover ratio could suggest potential issues with inventory management, such as overstocking or slow-moving inventory. This can tie up cash flow and result in holding costs for excess inventory. It may also indicate that the company is not effectively matching its inventory levels with customer demand.

Further analysis, in conjunction with other financial indicators and industry benchmarks, is recommended to gain a comprehensive understanding of Asbury Automotive Group Inc's inventory management efficiency and overall financial performance.