Asbury Automotive Group Inc (ABG)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 53.58 | 38.17 | 36.53 | 32.62 | 28.39 | 26.15 | 27.74 | 27.68 | 33.04 | 19.65 | 28.13 | 44.00 | 54.07 | 53.64 | 40.91 | 64.63 | 59.51 | 63.18 | 68.31 | 73.25 |
| Days of sales outstanding (DSO) | days | 5.58 | 5.03 | 4.31 | 4.03 | 4.07 | 4.51 | 4.99 | 5.90 | 8.53 | 4.13 | 4.65 | 6.47 | 7.96 | 6.79 | 4.72 | 4.57 | 6.89 | 5.78 | 6.10 | 6.06 |
| Number of days of payables | days | 4.71 | — | — | — | 4.36 | — | — | — | 7.54 | — | — | — | 6.03 | — | — | — | 4.94 | — | — | — |
| Cash conversion cycle | days | 54.44 | 43.20 | 40.84 | 36.65 | 28.09 | 30.66 | 32.73 | 33.58 | 34.03 | 23.79 | 32.79 | 50.47 | 56.00 | 60.43 | 45.62 | 69.20 | 61.47 | 68.96 | 74.41 | 79.31 |
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 for Asbury Automotive Group Inc has shown some fluctuations over the past eight quarters.
In Q4 2023, the cash conversion cycle increased to 54.44 days from the previous quarter's 43.20 days, reflecting a potential slowdown in the company's ability to convert its investments in inventory and accounts receivable into cash. This may indicate inefficiencies in the company's working capital management.
Comparing Q4 2023 to Q1 2022, the cash conversion cycle has increased significantly from 28.09 days to 54.44 days. This suggests that Asbury Automotive Group Inc may be experiencing prolonged delays in the collection of receivables or facing challenges in efficiently managing its inventory levels.
Overall, the trend in the cash conversion cycle for Asbury Automotive Group Inc shows some variability, with periods of improvement followed by deterioration. The company may benefit from enhanced cash management strategies to optimize its working capital efficiency and reduce the cycle time, thereby improving its overall financial performance.
Peer comparison
Dec 31, 2023