Group 1 Automotive Inc (GPI)

Inventory turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cost of revenue (ttm) US$ in thousands 16,774,700 15,880,700 15,401,400 15,226,400 14,876,800 14,453,500 13,945,400 13,539,400 13,257,000 12,725,800 12,171,000 11,833,200 11,232,900 10,923,000 10,594,700 9,327,900 9,082,800 9,221,200 9,346,200 10,125,240
Inventory US$ in thousands 2,636,800 2,752,200 2,356,800 2,101,400 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 1,468,000 1,375,700 1,327,100 1,992,600
Inventory turnover 6.36 5.77 6.53 7.25 7.58 8.39 8.12 8.79 9.77 10.73 10.81 10.79 10.47 12.84 10.28 7.06 6.19 6.70 7.04 5.08

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $16,774,700K ÷ $2,636,800K
= 6.36

Group 1 Automotive Inc's inventory turnover ratio has shown fluctuations over the years as per the provided data. The inventory turnover ratio indicates how efficiently the company manages its inventory by calculating the number of times the inventory is sold and replaced during a specific period.

From March 31, 2020, to December 31, 2024, the inventory turnover ratio ranged from a low of 5.08 to a high of 12.84. The ratio experienced an increasing trend from the initial value of 5.08 in March 2020, reaching its peak of 12.84 in September 30, 2021. This indicates that the company's inventory was being turned over at a faster rate during this period.

However, after reaching its peak, the inventory turnover ratio started to decline gradually. By December 31, 2024, the ratio had decreased to 6.36, which suggests that the company was taking longer to sell and replace its inventory compared to the peak period.

Overall, the fluctuating trend in the inventory turnover ratio of Group 1 Automotive Inc indicates variations in its inventory management efficiency over the analyzed period. Further investigation and analysis may be required to understand the factors influencing these fluctuations and to identify strategies for improving inventory turnover efficiency.