Group 1 Automotive Inc (GPI)

Days of sales outstanding (DSO)

		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
Receivables turnover		74.50	77.66	77.94	79.29	81.01	84.55	81.79	73.58	76.81	72.52	64.16	53.10	53.60	56.38	72.05	67.02	53.27	53.05	61.33	62.04
DSO	days	4.90	4.70	4.68	4.60	4.51	4.32	4.46	4.96	4.75	5.03	5.69	6.87	6.81	6.47	5.07	5.45	6.85	6.88	5.95	5.88

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 74.50
= 4.90

To analyze Group 1 Automotive, Inc.'s days of sales outstanding (DSO) over the past eight quarters, we can observe a consistent trend of fluctuating DSO figures.

In Q4 2023, the DSO increased to 12.41 days from 10.94 days in Q3 2023, indicating a potential delay in collecting accounts receivable compared to the previous quarter. This rise in DSO could be a cause for concern as it suggests a longer period between the company's sales and receipt of cash, impacting cash flows and liquidity.

Looking back further, the DSO in Q2 and Q1 2023 was 10.49 days and 9.81 days, respectively. These figures show a general downward trend in DSO leading up to Q4 2023, signifying an improvement in the company's efficiency in collecting receivables during that period.

Comparing the latest DSO value to the same quarter in the previous year, Q4 2022 had a DSO of 10.75 days. The increase to 12.41 days in Q4 2023 indicates a deterioration in the company's collection process over the year.

Overall, the analysis of Group 1 Automotive, Inc.'s DSO suggests some variations in the efficiency of the company's accounts receivable management. It is essential for the company to closely monitor and manage its DSO to ensure timely collection of receivables and maintain healthy cash flows.