Asbury Automotive Group Inc (ABG)

Inventory turnover

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
Cost of revenue (ttm) US$ in thousands 14,295,700 13,697,000 13,152,100 12,647,800 12,064,000 11,876,000 11,981,500 12,099,600 12,333,300 11,477,900 10,305,800 9,245,100 7,935,500 7,684,700 7,268,200 6,383,700 5,908,400 5,639,100 5,678,500 5,984,700
Inventory US$ in thousands 1,978,800 2,030,800 2,066,000 1,862,900 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
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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $14,295,700K ÷ $1,978,800K
= 7.22

Asbury Automotive Group Inc's inventory turnover ratio has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The inventory turnover ratio indicates how efficiently the company manages its inventory by measuring how many times inventory is sold and replaced during a specific period.

The trend in Asbury Automotive Group Inc's inventory turnover ratio reveals that there have been significant improvements in inventory management efficiency from March 31, 2020, to September 30, 2021. During this period, the ratio increased steadily from 5.65 to a peak of 18.57 on September 30, 2021, indicating that the company was selling its inventory at a much faster pace.

Subsequently, from September 30, 2021, to December 31, 2024, the inventory turnover ratio declined, showing signs of decreasing efficiency in managing inventory. The ratio fell to 6.82 by December 31, 2023, and remained relatively stable around that level until December 31, 2024, where it was recorded at 7.22.

Overall, the inventory turnover ratio of Asbury Automotive Group Inc has experienced fluctuations, with periods of significant improvement followed by a slight decline in inventory management efficiency. It is essential for the company to closely monitor its inventory turnover ratio to ensure optimal management of its inventory levels and avoid any potential inefficiencies or inventory obsolescence.