Asbury Automotive Group Inc (ABG)

Cash conversion cycle

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Days of inventory on hand (DOH) days 50.72 53.58 28.39 33.04 54.07
Days of sales outstanding (DSO) days
Number of days of payables days
Cash conversion cycle days 50.72 53.58 28.39 33.04 54.07

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 50.72 + — – —
= 50.72

The cash conversion cycle of Asbury Automotive Group Inc has shown fluctuating trends over the past five years. As of December 31, 2020, the company's cash conversion cycle was 54.07 days, indicating that it took approximately 54 days for Asbury Automotive to convert its investments in inventory and accounts receivable into cash.

Over the following years, there was a notable improvement in the efficiency of the company's cash conversion cycle. By December 31, 2022, the cash conversion cycle had reduced to 28.39 days, signifying that Asbury Automotive was able to convert its resources into cash more swiftly.

However, by December 31, 2023, the cash conversion cycle increased to 53.58 days, suggesting a potential slowdown in the company's ability to convert its assets into cash efficiently. This was followed by a slight improvement by December 31, 2024, with a cash conversion cycle of 50.72 days.

Overall, Asbury Automotive Group Inc should continue monitoring its cash conversion cycle closely to maintain and improve its liquidity and operational efficiency in the future.