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 | 8,866,100 |
| Inventory | US$ in thousands | 2,636,800 | 1,963,400 | 1,356,600 | 1,073,100 | 1,446,400 |
| Inventory turnover | 6.33 | 7.57 | 9.77 | 10.29 | 6.13 |
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.
Peer comparison
Dec 31, 2024