Asbury Automotive Group Inc (ABG)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,802,700 | 15,433,800 | 9,837,700 | 7,131,800 | 7,210,300 |
| Receivables | US$ in thousands | 226,100 | 171,900 | 229,800 | 155,500 | 136,200 |
| Receivables turnover | 65.47 | 89.78 | 42.81 | 45.86 | 52.94 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $14,802,700K ÷ $226,100K
= 65.47
The receivables turnover ratio measures how efficiently a company is able to collect its accounts receivable during a specific period. Asbury Automotive Group Inc's receivables turnover has been fluctuating over the past five years.
In 2023, the receivables turnover ratio was 65.47, indicating that the company collected its accounts receivable approximately 65.47 times during the year. This represents a slight decrease from the previous year, suggesting that the company may have taken longer to collect its receivables compared to 2022 when the ratio was 89.78.
The sharp increase in receivables turnover in 2022 from 2021's ratio of 42.81 indicates an improvement in the efficiency of Asbury Automotive Group Inc in collecting its receivables. However, the ratio in 2021 was notably lower than the ratios in 2020 and 2019, implying that the company may have experienced challenges in collecting receivables during that period.
Overall, fluctuations in the receivables turnover ratio may reflect changes in the company's credit policies, collection procedures, or customer payment behavior. Further analysis of the company's receivables management practices and financial performance would be beneficial in understanding the factors influencing these fluctuations.
Peer comparison
Dec 31, 2023