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.