Group 1 Automotive Inc (GPI)

Inventory turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cost of revenue US$ in thousands 16,693,300 14,853,400 13,256,900 11,041,200 9,082,900
Inventory US$ in thousands 2,636,800 1,963,400 1,356,600 1,073,100 1,468,000
Inventory turnover 6.33 7.57 9.77 10.29 6.19

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $16,693,300K ÷ $2,636,800K
= 6.33

The inventory turnover ratio for Group 1 Automotive Inc has shown fluctuations over the past five years. The ratio increased from 6.19 in December 2020 to 10.29 in December 2021, indicating a significant improvement in inventory management efficiency. In the following years, the ratio remained relatively high, at 9.77 in December 2022 and 7.57 in December 2023. However, there was a decrease in inventory turnover to 6.33 in December 2024, suggesting a possible slowdown in sales relative to the level of inventory held. Overall, the company has generally maintained a healthy inventory turnover ratio, reflecting effective inventory management practices. The management should continue to monitor inventory levels to ensure optimal utilization and minimize carrying costs.