Group 1 Automotive Inc (GPI)

Days of inventory on hand (DOH)

		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
Inventory turnover		8.56	9.50	9.20	9.99	11.09	12.10	12.20	12.14	11.75	14.48	11.57	7.98	7.12	5.44	5.78	4.28	4.54	4.81	4.69	4.48
DOH	days	42.62	38.43	39.68	36.55	32.90	30.17	29.93	30.08	31.07	25.20	31.56	45.76	51.27	67.12	63.18	85.31	80.46	75.81	77.88	81.51

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 8.56
= 42.62

Group 1 Automotive, Inc.'s days of inventory on hand (DOH) has seen a gradual increase over the past eight quarters. The company's DOH stood at 34.38 days in Q1 2022 and has been trending upwards since then, reaching 48.25 days in Q4 2023. This indicates that, on average, it took the company 48.25 days to sell its inventory during the most recent quarter.

The increasing trend in DOH suggests that Group 1 Automotive, Inc. may be experiencing challenges in efficiently managing its inventory levels. A higher DOH figure can tie up more capital in inventory and may point towards potential issues like overstocking, slowing sales, or changes in consumer demand.

It is crucial for the company to closely monitor its inventory turnover and consider implementing strategies to optimize inventory levels, such as improving demand forecasting, implementing lean inventory practices, or negotiating better terms with suppliers.

Overall, the increasing trend in Group 1 Automotive, Inc.'s days of inventory on hand warrants further analysis and proactive measures to ensure optimal inventory management and operational efficiency in the future.