Group 1 Automotive Inc (GPI)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	16,816,400	16,358,200	15,804,300	15,378,600	15,050,800	14,345,500	13,726,600	13,305,300	12,604,900	12,323,600	11,914,300	10,531,800	10,297,200	7,481,600	7,666,800	8,525,350	8,626,730	8,631,730	8,406,920	8,332,630
Inventory	US$ in thousands	1,963,400	1,722,300	1,718,000	1,540,000	1,356,600	1,185,600	1,125,500	1,096,400	1,073,100	850,800	1,030,200	1,320,400	1,446,400	1,375,700	1,327,100	1,992,600	1,901,700	1,792,700	1,793,670	1,860,910
Inventory turnover		8.56	9.50	9.20	9.99	11.09	12.10	12.20	12.14	11.75	14.48	11.57	7.98	7.12	5.44	5.78	4.28	4.54	4.81	4.69	4.48

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $16,816,400K ÷ $1,963,400K
= 8.56

Group 1 Automotive, Inc.'s inventory turnover has shown a fluctuating trend over the last eight quarters, as depicted by the data provided. The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a specific period. A higher inventory turnover ratio typically indicates better inventory management and faster sales.

In the most recent quarter, Q4 2023, Group 1 Automotive's inventory turnover was 7.57, lower than the previous quarter, indicating that the company may be taking longer to sell its inventory. However, it is important to consider seasonal variations and industry trends that could affect inventory turnover.

Comparing Q4 2023 to the same quarter in the previous year, Q4 2022, we see a downward trend in inventory turnover, suggesting a potential decline in sales efficiency or inventory management over the year.

Overall, Group 1 Automotive has shown a gradual decrease in inventory turnover over the past year. Analysts may want to investigate the reasons behind this trend, such as changes in demand, inventory management practices, or competitive pressures in the automotive industry, to assess the company's operational efficiency and financial performance.