Asbury Automotive Group Inc (ABG)

Total asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	17,188,300	16,495,500	15,925,000	15,421,400	14,802,600	14,696,900	14,896,700	15,104,500	15,434,000	14,382,800	12,922,800	11,556,600	9,837,700	9,416,900	8,856,300	7,717,400	7,131,800	6,791,800	6,788,400	7,146,800
Total assets	US$ in thousands	10,337,000	10,173,600	10,306,000	10,131,500	10,159,400	8,255,000	8,165,900	8,182,800	8,021,400	7,816,300	7,638,800	7,860,100	8,002,600	3,571,400	3,524,900	3,582,300	3,676,300	3,530,600	2,934,400	3,069,200
Total asset turnover		1.66	1.62	1.55	1.52	1.46	1.78	1.82	1.85	1.92	1.84	1.69	1.47	1.23	2.64	2.51	2.15	1.94	1.92	2.31	2.33

December 31, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $17,188,300K ÷ $10,337,000K
= 1.66

Asbury Automotive Group Inc's total asset turnover ratio has shown fluctuations over the analyzed period. The ratio measures the efficiency with which the company generates sales revenue from its total assets.

From March 31, 2020, to June 30, 2021, the total asset turnover increased steadily from 2.33 to 2.51, indicating that Asbury Automotive Group was generating more revenue relative to its total assets during this period. This suggests effective asset utilization.

However, from September 30, 2021, to December 31, 2024, the total asset turnover ratio gradually declined from 2.64 to 1.66. This decline could suggest that the company faced challenges in generating sufficient revenue from its assets during this period, which might be due to factors such as increased assets without corresponding revenue growth or inefficiencies in utilizing existing assets.

Overall, it is essential for Asbury Automotive Group Inc to closely monitor its total asset turnover ratio to ensure that it maintains or improves its efficiency in generating sales revenue from its assets, as a declining ratio could indicate potential operational inefficiencies or underutilization of assets.