Asbury Automotive Group Inc (ABG)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 17,188,600 | 14,802,700 | 15,433,900 | 9,837,700 | 7,131,800 |
| Total assets | US$ in thousands | 10,337,000 | 10,159,400 | 8,021,400 | 8,002,600 | 3,676,300 |
| Total asset turnover | 1.66 | 1.46 | 1.92 | 1.23 | 1.94 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $17,188,600K ÷ $10,337,000K
= 1.66
The total asset turnover ratio for Asbury Automotive Group Inc fluctuated over the five-year period provided. It stood at 1.94 in December 31, 2020, decreased to 1.23 by December 31, 2021, showing a significant decline in the efficiency with which the company was generating sales revenue from its total assets. However, the ratio improved to 1.92 by December 31, 2022, indicating a better utilization of assets to drive sales.
Subsequently, the total asset turnover ratio fell again to 1.46 as of December 31, 2023, suggesting a decrease in the company's ability to generate revenue from its assets. However, there was a slight recovery as the ratio increased to 1.66 by December 31, 2024.
Overall, the trend in the total asset turnover ratio indicates some variability in how effectively Asbury Automotive Group Inc was utilizing its total assets to generate sales revenue. It is essential for the company to monitor and manage this ratio to ensure optimal asset utilization and efficiency in revenue generation.
Peer comparison
Dec 31, 2024