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.