Group 1 Automotive Inc (GPI)

Payables 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
Payables	US$ in thousands	499,300	533,400	549,000	509,800	488,000	468,000	437,800	439,500	457,800	381,700	424,400	439,900	430,400	408,300	442,700	410,700	527,500	483,300	485,908	507,348
Payables turnover		33.68	30.67	28.79	30.17	30.84	30.65	31.35	30.27	27.53	32.29	28.07	23.94	23.92	18.32	17.32	20.76	16.35	17.86	17.30	16.42

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $16,816,400K ÷ $499,300K
= 33.68

To analyze Group 1 Automotive, Inc.'s payables turnover, we can observe a fluctuating trend over the past eight quarters. The payables turnover ratio measures how efficiently a company manages its payments to suppliers. A higher ratio indicates that the company is paying its suppliers more frequently, while a lower ratio suggests longer payment periods.

In Q4 2023, the payables turnover was calculated at 29.75, which indicates that the company paid its suppliers approximately 29.75 times during the quarter. This represents a significant increase from the previous quarter's ratio of 27.10 and marks the highest turnover ratio among the provided data points.

Despite the increase in Q4 2023, the overall trend appears to fluctuate within a relatively narrow range over the observed period, with values ranging from 25.40 to 29.75. The consistency in the payables turnover ratios suggests that Group 1 Automotive, Inc. may have established a stable payment pattern with its suppliers.

The trend of the payables turnover ratios should be interpreted in conjunction with other financial metrics and industry benchmarks to gain a comprehensive understanding of the company's financial performance and supplier payment practices. Further analysis of the company's cash flow, inventory management, and overall working capital efficiency would provide additional insights into Group 1 Automotive, Inc.'s financial health and operational effectiveness.