Group 1 Automotive Inc (GPI)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 198.35 | 10,482.39 | 251.40 | 161.47 | 62.58 | — | 74.67 | 381.24 | 253.87 | 325.89 | — | 508.52 | 111.82 | 25.18 | 30.49 | 56.22 | 67.20 | 105.01 | 185.74 | — |
To analyze the activity ratios of Group 1 Automotive Inc based on the provided data:
1. Inventory Turnover:
The inventory turnover ratio measures how efficiently a company manages its inventory levels by evaluating how many times its inventory is sold and replaced in a given period. Group 1 Automotive Inc's inventory turnover has shown fluctuating trends over the years, with a general increasing trend from March 2020 to June 2022, peaking at 12.84 in September 2021. However, it decreased slightly to 6.36 by December 2024.
2. Receivables Turnover:
The receivables turnover ratio reflects how efficiently a company collects outstanding payments from its customers. In this case, the data provided indicates no values for receivables turnover, which may suggest that specific information regarding the receivables turnover ratio is not available or not applicable for Group 1 Automotive Inc over the stated periods.
3. Payables Turnover:
The payables turnover ratio assesses how effectively a company manages its accounts payable by determining how quickly it pays its suppliers. Similarly to receivables turnover, the data does not include values for payables turnover, indicating a lack of information or relevance related to this metric for Group 1 Automotive Inc in the mentioned periods.
4. Working Capital Turnover:
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. Group 1 Automotive Inc's working capital turnover reveals significant variations over the years, with figures ranging from negative values to substantial positive values like 10,482.39 in September 2024. These fluctuations suggest changes in operational efficiency and capital management strategies throughout the reporting periods.
In conclusion, while the inventory turnover and working capital turnover ratios provide insights into Group 1 Automotive Inc's operational efficiency and capital utilization, the absence of data for receivables turnover and payables turnover limits a comprehensive assessment of the company's complete activity cycle management during the specified periods.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 57.37 | 63.26 | 55.85 | 50.37 | 48.17 | 43.49 | 44.97 | 41.52 | 37.35 | 34.01 | 33.75 | 33.82 | 34.87 | 28.43 | 35.49 | 51.67 | 58.99 | 54.45 | 51.83 | 71.83 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Group 1 Automotive Inc's Days of Inventory on Hand (DOH) has shown a gradual decrease from 71.83 days on March 31, 2020, to 57.37 days on December 31, 2024. This trend indicates an improvement in inventory management efficiency over the analyzed period.
However, there is no data available for Days of Sales Outstanding (DSO) and Number of Days of Payables for the company, suggesting that there might be limitations in assessing the company's accounts receivable and accounts payable turnover efficiency.
Overall, based on the decreasing trend in Days of Inventory on Hand, Group 1 Automotive Inc appears to be making progress in managing its inventory levels efficiently. Further data on DSO and days of payables would provide a more comprehensive assessment of the company's overall liquidity and operational effectiveness.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 7.12 | 6.87 | 6.85 | 6.82 | 6.85 | 6.69 | 6.46 | 6.16 | 7.09 | 6.85 | 6.06 | 5.97 | 6.89 | 7.14 | 7.70 |
| Total asset turnover | 2.03 | 1.89 | 2.07 | 2.14 | 2.30 | 9.84 | 2.28 | 2.38 | 2.41 | 2.50 | 2.46 | 2.41 | 2.38 | 2.78 | 2.62 | 2.21 | 2.13 | 2.20 | 2.27 | 2.19 |
The Fixed Asset Turnover ratio for Group 1 Automotive Inc has been relatively stable over recent quarters, ranging between 5.97 and 7.12. This indicates that the company generates between 5.97 to 7.12 in sales for every dollar invested in fixed assets. There was a slight dip at the end of 2021 but overall, the trend has been consistent.
On the other hand, the Total Asset Turnover ratio shows some fluctuation, with a significant spike in the third quarter of 2023, reaching 9.84 before reverting back to lower levels. Generally, the ratio has been between 2.07 and 2.78, signifying that the company generates around 2 to 3 dollars in sales for every dollar of total assets.
These ratios indicate that Group 1 Automotive Inc efficiently utilizes its assets to generate revenue, with a more consistent performance in terms of fixed asset turnover compared to total asset turnover, which experienced some volatility. Further analysis of the reasons behind the fluctuations could provide more insights into the company's operational efficiency and asset management strategies over time.