Group 1 Automotive Inc (GPI)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	16,823,000	15,057,800	12,604,900	10,296,200	11,685,500
Payables	US$ in thousands	499,300	488,000	457,800	430,400	527,500
Payables turnover		33.69	30.86	27.53	23.92	22.15

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $16,823,000K ÷ $499,300K
= 33.69

Group 1 Automotive, Inc.'s payables turnover has shown a consistent increasing trend over the past five years, from 19.39 in 2019 to 29.75 in 2023. This indicates that the company is managing its accounts payable more efficiently, as it is taking fewer days to pay off its suppliers. A higher payables turnover ratio suggests that the company is effectively utilizing its trade credit and managing its working capital effectively. It implies that the company is either paying its suppliers more quickly or negotiating more favorable credit terms, which can be beneficial for maintaining good relationships with suppliers. Overall, the increasing trend in payables turnover reflects positively on Group 1 Automotive, Inc.'s financial health and efficiency in managing its payables.