Group 1 Automotive Inc (GPI)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 74.50 77.66 77.94 79.29 81.01 84.55 81.79 73.58 76.81 72.52 64.16 53.10 53.60 56.38 72.05 67.02 53.27 53.05 61.33 62.04
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
Working capital turnover 62.19 86.57 74.26 379.24 252.55 324.81 — 506.84 111.46 24.96 30.22 55.58 66.38 104.41 184.66 — 127.57 — 431.52 —

Group 1 Automotive, Inc.'s activity ratios provide valuable insights into how efficiently the company is managing its inventory, receivables, payables, and working capital.

1. Inventory Turnover: The inventory turnover ratio for Group 1 Automotive, Inc. has been relatively stable over the past eight quarters, ranging from 7.57 to 10.64. This indicates that the company is effectively managing its inventory levels and converting its inventory into sales multiple times a year.

2. Receivables Turnover: The receivables turnover ratio has also shown consistency, ranging from 29.42 to 37.21 over the same period. This implies that Group 1 Automotive, Inc. is collecting its receivables efficiently and effectively, with higher turnover ratios indicating quicker collection of outstanding payments.

3. Payables Turnover: The payables turnover ratio has fluctuated between 25.40 and 29.75 during the quarters under consideration. This suggests that the company is managing its payables effectively, with a higher turnover ratio indicating faster payments to suppliers.

4. Working Capital Turnover: The working capital turnover ratio has shown significant variations, with sharp spikes observed in Q1 2023 and Q1 2022. The exceptionally high working capital turnover in these quarters may reflect efficient management of working capital to generate sales revenue.

Overall, the analysis of Group 1 Automotive, Inc.'s activity ratios indicates that the company is efficiently managing its operations in terms of inventory, receivables, payables, and working capital turnover, which is crucial for sustainable business growth and profitability.

Average number of days

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
Days of inventory on hand (DOH) days 42.62 38.43 39.68 36.55 32.90 30.17 29.93 30.08 31.07 25.20 31.56 45.76 51.27 67.12 63.18 85.31 80.46 75.81 77.88 81.51
Days of sales outstanding (DSO) days 4.90 4.70 4.68 4.60 4.51 4.32 4.46 4.96 4.75 5.03 5.69 6.87 6.81 6.47 5.07 5.45 6.85 6.88 5.95 5.88
Number of days of payables days 10.84 11.90 12.68 12.10 11.83 11.91 11.64 12.06 13.26 11.31 13.00 15.25 15.26 19.92 21.08 17.58 22.32 20.44 21.10 22.22

Group 1 Automotive, Inc.'s activity ratios provide insights into the company's efficiency in managing its inventory, accounts receivable, and accounts payable.

- Days of Inventory on Hand (DOH) have shown an increasing trend over the quarters, indicating that inventory is held for a longer period before being sold. This could potentially tie up funds and increase storage costs.

- Days of Sales Outstanding (DSO) have fluctuated but generally decreased, suggesting that the company is collecting its accounts receivable faster. A lower DSO indicates efficient credit management and timely collection of sales, which is positive.

- Number of Days of Payables reflects the number of days it takes for the company to pay its suppliers. The trend has been relatively stable with minor fluctuations, indicating a consistent payment strategy.

Overall, improvements in DSO and stable payables days are positive signs of effective working capital management. However, the increasing trend in DOH should be monitored to ensure inventory turnover remains optimal for financial health and operational efficiency.

Long-term

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
Fixed asset turnover 8.98 7.80 7.56 7.59 8.46 7.65 7.47 7.27 7.64 7.96 7.67 6.73 6.67 6.85 7.09 7.66 7.75 7.94 8.12 8.39
Total asset turnover 2.28 2.33 2.27 2.37 2.40 2.49 2.45 2.40 2.38 2.75 2.60 2.18 2.11 2.19 2.26 2.18 2.15 2.21 2.21 2.18

Group 1 Automotive, Inc.'s fixed asset turnover ratio has shown relatively stable performance over the past eight quarters, ranging from 7.18 to 7.95. This indicates that the company generates approximately 7.18 to 7.95 dollars in sales for every dollar invested in fixed assets. The consistently high fixed asset turnover suggests that Group 1 Automotive efficiently utilizes its fixed assets to generate revenue.

In contrast, the total asset turnover ratio has fluctuated more significantly, ranging from 2.28 to 2.47 over the same period. Despite these fluctuations, the company has generally maintained a strong total asset turnover, reflecting its ability to generate revenue relative to its total asset base. A high total asset turnover ratio indicates that Group 1 Automotive is effective in generating sales with the total assets at its disposal.

Overall, the long-term activity ratios demonstrate Group 1 Automotive's efficient use of both fixed and total assets to generate sales revenue. The stable performance of the fixed asset turnover ratio, coupled with the generally strong total asset turnover ratio, suggests that the company effectively manages its assets to drive financial performance and maximize shareholder value.