Asbury Automotive Group Inc (ABG)

Receivables turnover

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
Revenue (ttm) US$ in thousands 14,802,700 14,696,900 14,896,600 15,104,200 15,433,700 14,382,600 12,922,800 11,556,700 9,837,800 9,417,000 8,856,300 7,717,400 7,131,800 6,791,800 6,788,400 7,146,800 7,210,300 7,100,500 7,015,900 6,936,000
Receivables US$ in thousands 226,100 202,500 175,700 166,600 171,900 177,900 176,600 186,700 229,800 106,600 112,900 136,800 155,500 126,400 87,700 89,400 136,200 112,500 117,300 115,100
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

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $14,802,700K ÷ $226,100K
= 65.47

The receivables turnover ratio measures how efficiently a company is able to collect outstanding receivables from its customers during a specific period. Higher turnover ratios generally indicate that the company is more effective at managing its accounts receivable.

Analyzing the trend of Asbury Automotive Group Inc's receivables turnover ratio over the past eight quarters, we observe fluctuations in the ratio. The ratio ranged from a low of 61.90 in Q1 2022 to a high of 90.66 in Q1 2023.

In Q4 2022, the receivables turnover ratio was 89.78, indicating that the company collected its outstanding receivables approximately 89.78 times during that quarter. This was followed by a slight decrease in turnover to 80.85 in Q3 2022 and a subsequent increase to 84.78 in Q2 2023.

The most recent data for Q4 2023 shows a further decrease in the receivables turnover ratio to 65.47. This decline may signal a potential issue with the company's ability to collect receivables efficiently during that period. It would be important for the company to investigate the reasons behind this decrease and take necessary actions to improve their accounts receivable management.

Overall, the fluctuation in Asbury Automotive Group Inc's receivables turnover ratio indicates variability in its collection efficiency over the past eight quarters. Further analysis and comparison with industry benchmarks would provide additional insights into the company's receivables management performance.