Asbury Automotive Group Inc (ABG)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 65.47 72.58 84.78 90.66 89.78 80.85 73.18 61.90 42.81 88.34 78.44 56.41 45.86 53.73 77.40 79.94 52.94 63.12 59.81 60.26
Payables turnover 77.42 — — — 83.67 — — — 48.42 — — — 60.54 — — — 73.95 — — —
Working capital turnover 81.60 13.86 15.61 15.38 17.61 22.00 29.07 50.44 29.68 19.17 23.73 28.70 39.12 79.62 9.72 12.51 20.28 33.35 27.31 32.75

Asbury Automotive Group Inc's activity ratios provide insight into how effectively the company is managing its resources to generate sales and collect payments.

1. Inventory Turnover: Asbury's inventory turnover has been gradually decreasing over the past quarters, indicating that the company is holding onto its inventory for a longer period before selling it. This may suggest inefficiencies in inventory management or slower sales.

2. Receivables Turnover: The receivables turnover ratio has shown fluctuations, but overall, it has remained at a relatively stable level. This indicates that Asbury is efficient in collecting payments from customers, with a higher turnover ratio reflecting quicker collection of accounts receivable.

3. Payables Turnover: Data is missing for certain quarters, but based on available information, Asbury's payables turnover has generally been decreasing. This could mean the company is taking longer to pay its suppliers, which might impact its relationships with vendors.

4. Working Capital Turnover: The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate revenue. Asbury's working capital turnover has shown volatility, with a significant decrease in the most recent quarter. This could signify challenges in efficiently using its working capital to drive sales.

In summary, while Asbury Automotive Group Inc demonstrates efficiency in collecting payments from customers, there are signs of potential inefficiencies in inventory management and working capital utilization. Monitoring and improving these ratios could help enhance the company's overall operational performance.

Average number of days

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
Days of inventory on hand (DOH) days 53.58 38.17 36.53 32.62 28.39 26.15 27.74 27.68 33.04 19.65 28.13 44.00 54.07 53.64 40.91 64.63 59.51 63.18 68.31 73.25
Days of sales outstanding (DSO) days 5.58 5.03 4.31 4.03 4.07 4.51 4.99 5.90 8.53 4.13 4.65 6.47 7.96 6.79 4.72 4.57 6.89 5.78 6.10 6.06
Number of days of payables days 4.71 — — — 4.36 — — — 7.54 — — — 6.03 — — — 4.94 — — —

Asbury Automotive Group Inc's activity ratios indicate the efficiency with which the company manages its inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH): The trend in DOH shows an increase over the quarters, suggesting that inventory turnover has slowed down. This may imply overstocking or slower sales, which could tie up capital in unsold inventory.

2. Days of Sales Outstanding (DSO): DSO reflects how long it takes for the company to collect payments from customers. The decreasing trend in DSO indicates faster collection of receivables, which is a positive sign as it implies improved cash flow and reduced credit risk.

3. Number of Days of Payables: The data shows sporadic information for the number of days of payables. However, based on the available data, the trend suggests that the company may be taking longer to pay its suppliers.

In conclusion, while Asbury Automotive Group Inc has shown improvements in managing receivables, there may be room for optimization in inventory turnover and payable days to enhance overall efficiency and working capital management.

Long-term

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
Fixed asset turnover 6.39 7.50 7.68 7.82 7.95 7.52 6.55 5.81 4.94 7.87 7.52 8.12 7.46 7.18 7.36 7.73 7.93 7.53 7.64 7.58
Total asset turnover 1.46 1.78 1.82 1.85 1.92 1.84 1.69 1.47 1.23 2.64 2.51 2.15 1.94 1.92 2.31 2.33 2.48 2.52 2.49 2.39

Asbury Automotive Group Inc's fixed asset turnover has been fluctuating over the past eight quarters, ranging from 5.81 to 7.95. This ratio measures how efficiently the company is generating sales from its investment in fixed assets. The upward trend in fixed asset turnover indicates an improvement in the company's ability to generate sales from its fixed assets over time.

On the other hand, the total asset turnover ratio has also shown variability, ranging from 1.47 to 1.92 over the same period. This ratio reflects the company's overall efficiency in generating sales from all its assets. The increasing trend in total asset turnover suggests that Asbury Automotive Group Inc has been more effective in utilizing its total assets to generate sales.

Overall, both the fixed asset turnover and total asset turnover ratios reflect an improvement in the company's efficiency in generating sales compared to the corresponding quarters of the previous year. This indicates positive operational performance and effective utilization of assets to drive revenue growth.