Asbury Automotive Group Inc (ABG)
Working capital 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 current assets | US$ in thousands | 3,137,900 | 3,057,100 | 1,909,800 | 1,929,400 | 1,405,700 |
Total current liabilities | US$ in thousands | 2,836,300 | 2,875,700 | 1,033,400 | 1,598,000 | 1,223,400 |
Working capital turnover | 56.99 | 81.60 | 17.61 | 29.69 | 39.12 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $17,188,600K ÷ ($3,137,900K – $2,836,300K)
= 56.99
Asbury Automotive Group Inc's working capital turnover has exhibited fluctuations over the years, indicating varying efficiencies in its management of working capital. The working capital turnover ratio measures how efficiently the company utilizes its working capital to generate sales revenue.
- In December 31, 2020, the working capital turnover was 39.12, suggesting that the company was able to generate 39.12 times its revenue using its working capital during that period.
- By December 31, 2021, the working capital turnover decreased to 29.69, indicating a decline in the efficiency of working capital utilization in generating revenue.
- A considerable decrease was observed by December 31, 2022, with the working capital turnover dropping to 17.61, signaling a significant decrease in efficiency.
- However, there was a substantial improvement by December 31, 2023, as the working capital turnover soared to 81.60, suggesting a sharp increase in efficiency in utilizing working capital to drive sales.
- By December 31, 2024, the working capital turnover ratio was 56.99, showing ongoing strong efficiency in working capital management.
Overall, the working capital turnover figures highlight the varying levels of efficiency in Asbury Automotive Group Inc's utilization of working capital to generate sales revenue over the years. The fluctuations in the ratio imply changes in operational efficiency and effectiveness in managing the company's working capital. Further analysis and comparison with industry benchmarks can provide deeper insights into the company's financial performance and working capital management practices.
Peer comparison
Dec 31, 2024