Asbury Automotive Group Inc (ABG)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 50.52 | 54.12 | 57.34 | 53.76 | 53.50 | 38.18 | 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 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 50.52 | 54.12 | 57.34 | 53.76 | 53.50 | 38.18 | 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 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 50.52 + — – —
= 50.52
The cash conversion cycle of Asbury Automotive Group Inc has exhibited fluctuations over the periods under consideration. The trend shows a generally decreasing cycle duration from March 2020 to September 2021, which indicates improvements in its liquidity management and efficiency in converting its resources into cash.
From September 2021 to June 2024, there was some variability in the cash conversion cycle but it remained relatively stable within a range of around 20 to 60 days. The company's ability to efficiently convert its investments into cash and manage its working capital during this period appears to have been consistent.
Overall, Asbury Automotive Group Inc's cash conversion cycle reflects its effectiveness in managing its operating cash flows, inventory turnover, and accounts receivable collection. It's important for the company to continue monitoring and potentially improving this cycle to ensure optimal cash management and operational efficiency.
Peer comparison
Dec 31, 2024