Asbury Automotive Group Inc (ABG)

Cash conversion cycle

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Days of inventory on hand (DOH) days 53.58 28.39 33.04 54.07 59.51
Days of sales outstanding (DSO) days 5.58 4.07 8.53 7.96 6.89
Number of days of payables days 4.71 4.36 7.54 6.03 4.94
Cash conversion cycle days 54.44 28.09 34.03 56.00 61.47

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 53.58 + 5.58 – 4.71
= 54.44

The cash conversion cycle of Asbury Automotive Group Inc has exhibited fluctuations over the past five years. In 2023, the company's cash conversion cycle increased significantly to 54.44 days compared to 28.09 days in 2022 and 34.03 days in 2021. This indicates that in 2023, it took the company longer to convert its investments in inventory and accounts receivable into cash.

In 2020 and 2019, the cash conversion cycle was 56.00 days and 61.47 days, respectively. This suggests that the company had a longer cash conversion cycle in those years compared to more recent years. A longer cash conversion cycle implies that the company is taking more time to receive payments from customers and convert inventory into sales, which can tie up cash and impact liquidity.

Overall, the trend in the cash conversion cycle for Asbury Automotive Group Inc shows variability, with fluctuations in the time taken to convert investments into cash. Further analysis of the company's operating and financial performance may provide insights into the reasons behind these fluctuations and help assess the efficiency of its working capital management.


Peer comparison

Dec 31, 2023