Group 1 Automotive Inc (GPI)

Days of inventory on hand (DOH)

		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
Inventory turnover		6.36	5.77	6.53	7.25	7.58	8.39	8.12	8.79	9.77	10.73	10.81	10.79	10.47	12.84	10.28	7.06	6.19	6.70	7.04	5.08
DOH	days	57.37	63.26	55.85	50.37	48.17	43.49	44.97	41.52	37.35	34.01	33.75	33.82	34.87	28.43	35.49	51.67	58.99	54.45	51.83	71.83

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.36
= 57.37

The days of inventory on hand (DOH) for Group 1 Automotive Inc has shown a fluctuating trend over the reporting periods. From March 31, 2020, to December 31, 2022, the DOH ranged from 28.43 days to 71.83 days, indicating variability in how efficiently the company managed its inventory levels.

However, from March 31, 2023, to September 30, 2024, there was a more stable pattern, with the DOH staying within a narrower range of 37.35 days to 63.26 days. This could suggest improved inventory management practices during this period.

It is important to note that a lower number of days of inventory on hand is generally preferred as it indicates that the company is able to sell its inventory faster. Conversely, a higher number may suggest slow-moving inventory or potential obsolescence risks. Therefore, Group 1 Automotive Inc may benefit from a continued focus on optimizing its inventory turnover to enhance operational efficiency and profitability.