Asbury Automotive Group Inc (ABG)

Working capital 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
Total current assets US$ in thousands 3,057,100 2,054,900 2,003,900 2,050,200 1,909,800 1,812,600 1,601,500 1,813,900 1,929,400 1,150,500 1,132,500 1,317,600 1,405,700 1,298,000 1,591,700 1,753,200 1,602,600 1,448,000 1,529,500 1,628,600
Total current liabilities US$ in thousands 2,875,700 994,500 1,049,600 1,068,300 1,033,400 1,158,700 1,156,900 1,584,800 1,597,900 659,200 759,300 1,048,700 1,223,400 1,212,700 893,200 1,181,900 1,247,000 1,235,100 1,272,600 1,416,800
Working capital turnover 81.60 13.86 15.61 15.38 17.61 22.00 29.07 50.44 29.68 19.17 23.73 28.70 39.12 79.62 9.72 12.51 20.28 33.35 27.31 32.75

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $14,802,700K ÷ ($3,057,100K – $2,875,700K)
= 81.60

Asbury Automotive Group Inc's working capital turnover ratio has exhibited significant fluctuation over the past eight quarters. In Q4 2023, the working capital turnover ratio spiked to 81.47, indicating that the company generated significant revenue relative to its working capital in that quarter. This sharp increase contrasts with the comparatively lower working capital turnover ratios in the preceding two quarters, Q3 2023 (13.86) and Q2 2023 (15.61).

Looking back further, the working capital turnover ratio in Q4 2022 was 17.61 and 22.00 in Q3 2022, both of which were lower than the Q4 2023 figure. The ratio hit its peak in Q2 2022 at 29.07 and then decreased in Q1 2022 to 50.44.

This erratic pattern in the working capital turnover ratio may suggest fluctuations in how efficiently Asbury Automotive Group Inc is utilizing its working capital to generate sales revenue. It would be prudent to further investigate the causes behind these fluctuations to determine if they are attributed to changes in the company's operations, management of working capital, or other external factors impacting its financial performance.