Asbury Automotive Group Inc (ABG)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 12,046,900 | 12,333,300 | 7,935,500 | 5,908,400 | 6,041,400 |
| Payables | US$ in thousands | 155,600 | 147,400 | 163,900 | 97,600 | 81,700 |
| Payables turnover | 77.42 | 83.67 | 48.42 | 60.54 | 73.95 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $12,046,900K ÷ $155,600K
= 77.42
The payables turnover ratio measures how efficiently a company is managing its trade payables by calculating how many times during a period the company pays off its suppliers.
Based on the data provided, Asbury Automotive Group Inc's payables turnover has fluctuated over the past five years. In 2023, the payables turnover ratio was 77.42, compared to 83.67 in 2022, 48.42 in 2021, 60.54 in 2020, and 73.95 in 2019.
A decreasing trend in the payables turnover ratio may indicate that the company is taking longer to pay off its suppliers, potentially impacting its relationships with vendors. Conversely, an increasing trend could suggest that the company is efficiently managing its payables by paying them off more frequently.
It is important to analyze the payables turnover ratio in conjunction with other financial metrics and industry benchmarks to gain a more comprehensive understanding of Asbury Automotive Group Inc's financial performance and management of its payables.
Peer comparison
Dec 31, 2023