Group 1 Automotive Inc (GPI)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	17,760,600	16,137,600	13,416,000	10,768,700	11,964,300
Property, plant and equipment	US$ in thousands	1,977,400	1,906,800	1,788,700	1,608,200	1,547,100
Fixed asset turnover		8.98	8.46	7.50	6.70	7.73

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $17,760,600K ÷ $1,977,400K
= 8.98

Group 1 Automotive, Inc. has demonstrated consistent performance in utilizing its fixed assets efficiently over the past five years. The fixed asset turnover ratio has steadily increased from 7.78 in 2019 to 7.95 in 2023. This suggests that the company is generating more revenue relative to its investment in fixed assets each year. The trend indicates improved operational efficiency and effective utilization of the company's property, plant, and equipment to generate sales. Higher fixed asset turnover ratios generally signify that the company is effectively managing its assets to generate sales, which can be seen as a positive indicator of financial health and operational effectiveness for Group 1 Automotive, Inc.