Asbury Automotive Group Inc (ABG)

Short-term

Turnover ratios

Analysis of Asbury Automotive Group Inc Activity Ratios:

1. Inventory Turnover:
- Asbury Automotive Group's inventory turnover has shown fluctuation over the years.
- The company's inventory turnover ranged between 5.65 and 18.57 times during the period from March 31, 2020, to September 30, 2024.
- A higher inventory turnover rate indicates efficient inventory management and faster sales.
- The notable increase in inventory turnover from 2020 to 2021 suggests better inventory control and sales growth.
- However, a slight decline in inventory turnover from 2022 to 2024 may indicate inventory management challenges or changes in sales patterns.

2. Receivables Turnover:
- Receivables turnover data is not available, indicating that information on how quickly the company collects its receivables is not provided.
- Receivables turnover ratio helps assess the efficiency of the company in collecting payments from its customers.
- The absence of data limits the ability to analyze the company's credit policies and collection efficiency.

3. Payables Turnover:
- Similar to receivables turnover, payables turnover data is not provided, making it challenging to evaluate how quickly Asbury Automotive pays its suppliers.
- Payables turnover ratio helps in understanding the company's payment terms and liquidity management related to trade payables.

4. Working Capital Turnover:
- Asbury Automotive Group's working capital turnover has shown varying trends since March 31, 2020.
- The working capital turnover ratio ranged from 9.72 to 93.46 times during the period analyzed.
- A higher working capital turnover ratio indicates efficient utilization of working capital in generating sales.
- The significant fluctuations in working capital turnover suggest changes in operational efficiency and capital management over time.

In conclusion, while Asbury Automotive Group's inventory turnover and working capital turnover show fluctuating trends with some improvements, the lack of data for receivables turnover and payables turnover limits a comprehensive analysis of the company's overall operating efficiency and liquidity management.

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Average number of days

Based on the data provided, we can analyze the activity ratios of Asbury Automotive Group Inc as follows:

1. Days of Inventory on Hand (DOH):
- The Days of Inventory on Hand measures how efficiently the company manages its inventory. A lower number of days indicates that the company is selling inventory quickly.
- Asbury Automotive Group Inc's DOH decreased from 64.63 days on March 31, 2020, to 50.52 days on December 31, 2024, with fluctuations over the years. The trend shows a general reduction in inventory holding periods, which could signify improved inventory management efficiency.

2. Days of Sales Outstanding (DSO):
- Unfortunately, there is no data provided for Days of Sales Outstanding, which would have shown how quickly the company collects revenue from its customers. Without this information, we are unable to assess the efficiency of Asbury Automotive Group Inc's accounts receivable management.

3. Number of Days of Payables:
- Similarly, there is no data provided for the Number of Days of Payables, which would have indicated the number of days the company takes to pay its suppliers. This ratio is important for analyzing the company's payment terms and cash flow management.

In conclusion, based on the available information, Asbury Automotive Group Inc has shown improvements in managing its inventory efficiently over the years. However, without data on DSO and payables, a comprehensive analysis of the company's overall activity and working capital management is limited.

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Long-term

Asbury Automotive Group Inc's fixed asset turnover has shown fluctuating trends over the years. The ratio peaked at 8.12 in March 2021 before gradually declining to 4.94 in December 2021, possibly indicating changes in the efficiency of utilizing fixed assets during this period. However, the ratio recovered and stabilized around 7.68-7.95 from June 2022 to March 2023, suggesting improved management of fixed assets.

In terms of total asset turnover, the company's performance has also been variable, with the ratio ranging from 1.23 to 2.64 between December 2020 and September 2021. This indicates fluctuations in the company's ability to generate sales relative to its total assets during this period. While there was a notable improvement in total asset turnover from March 2021 to September 2021, the ratio declined consistently thereafter, possibly indicating challenges in effectively utilizing total assets to drive revenue.

Overall, monitoring these activity ratios provides insights into Asbury Automotive Group Inc's operational efficiency and asset utilization, which are crucial in assessing the company's overall financial health and performance over time.