Group 1 Automotive Inc (GPI)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 74.50 | 81.01 | 75.41 | 53.84 | 53.15 | |
| DSO | days | 4.90 | 4.51 | 4.84 | 6.78 | 6.87 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 74.50
= 4.90
Group 1 Automotive, Inc.'s days of sales outstanding (DSO) have shown a decreasing trend over the past five years, indicating an improvement in the company's efficiency in collecting accounts receivable.
In the most recent year, as of December 31, 2023, the DSO stands at 12.41 days, which is higher compared to the previous year but lower than the levels reported in 2019 and 2020. This suggests that the company took slightly longer to collect its outstanding sales in 2023 compared to the prior year.
Overall, the decreasing trend in DSO from 2019 to 2022 reflects positively on the company's management of its accounts receivable and indicates a faster conversion of sales into cash. However, the slight increase in DSO in 2023 may require further monitoring to ensure efficient collection practices in place.
Peer comparison
Dec 31, 2023