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.