Asbury Automotive Group Inc (ABG)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,802,700 | 15,433,800 | 9,837,700 | 7,131,800 | 7,210,300 |
| Total current assets | US$ in thousands | 3,057,100 | 1,909,800 | 1,929,400 | 1,405,700 | 1,602,600 |
| Total current liabilities | US$ in thousands | 2,875,700 | 1,033,400 | 1,597,900 | 1,223,400 | 1,247,000 |
| Working capital turnover | 81.60 | 17.61 | 29.68 | 39.12 | 20.28 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $14,802,700K ÷ ($3,057,100K – $2,875,700K)
= 81.60
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales. A higher ratio generally indicates better efficiency in utilizing current assets to generate revenue.
Asbury Automotive Group Inc's working capital turnover has varied over the past five years, with a notable increase from 2019 to 2020, followed by fluctuations in subsequent years. In 2023, the working capital turnover ratio stands at 81.47, indicating a significant improvement in efficiency compared to the previous years.
This substantial increase suggests that Asbury Automotive Group Inc has been able to generate a higher level of sales revenue relative to its working capital investment in 2023. It signifies improved efficiency in managing its current assets and liabilities to support sales activities.
Overall, the significant improvement in the working capital turnover ratio for Asbury Automotive Group Inc in 2023 reflects a positive trend in the company's operational efficiency and effective utilization of its working capital resources to drive revenue generation.
Peer comparison
Dec 31, 2023