Asbury Automotive Group Inc (ABG)
Working capital 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 current assets | US$ in thousands | 3,137,900 | 3,104,500 | 3,218,300 | 2,922,400 | 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 |
Total current liabilities | US$ in thousands | 2,836,300 | 2,594,200 | 2,565,500 | 2,757,400 | 2,875,700 | 994,500 | 1,049,600 | 1,068,300 | 1,033,400 | 1,158,700 | 1,156,900 | 1,584,800 | 1,598,000 | 659,200 | 759,300 | 1,048,700 | 1,223,400 | 1,212,700 | 893,200 | 1,186,000 |
Working capital turnover | 56.99 | 32.33 | 24.39 | 93.46 | 81.60 | 13.86 | 15.61 | 15.38 | 17.61 | 22.00 | 29.07 | 50.44 | 29.69 | 19.17 | 23.73 | 28.70 | 39.12 | 79.62 | 9.72 | 12.60 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $17,188,300K ÷ ($3,137,900K – $2,836,300K)
= 56.99
The working capital turnover ratio measures the efficiency with which a company utilizes its working capital to generate sales revenue. A higher turnover ratio indicates that the company is effectively managing its working capital resources.
Analyzing the data provided for Asbury Automotive Group Inc, we observe fluctuations in the working capital turnover ratio over the periods reported. The trend shows some variability with occasional spikes and declines, indicating potential changes in the company's working capital management efficiency.
For instance, the working capital turnover ratio significantly increased from 12.60 on March 31, 2020, to 79.62 on September 30, 2020, which could suggest improved efficiency in utilizing working capital during that period. However, the ratio decreased to 15.38 on March 31, 2023, before showing a notable increase to 93.46 on March 31, 2024.
The working capital turnover ratio remained relatively high throughout the latter part of 2023 and into 2024, with values ranging from 32.33 on September 30, 2024, to 93.46 on March 31, 2024. This indicates a potentially strong performance in generating sales revenue relative to the level of working capital during those periods.
Overall, the company's working capital turnover ratio displays varying trends over time, suggesting fluctuations in operational efficiency in converting working capital into sales. Asbury Automotive Group Inc may benefit from further analysis to understand the factors driving these fluctuations and to make informed decisions regarding its working capital management strategies.
Peer comparison
Dec 31, 2024