Group 1 Automotive Inc (GPI)

Receivables 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
Revenue (ttm)	US$ in thousands	17,760,500	17,358,100	16,826,700	16,421,000	16,137,700	15,590,700	14,935,700	14,495,500	13,664,700	13,097,100	12,626,600	11,044,500	10,721,000	10,910,400	10,987,000	11,869,400	11,991,360	11,788,770	11,560,390	11,497,440
Receivables	US$ in thousands	238,400	223,500	215,900	207,100	199,200	184,400	182,600	197,000	177,900	180,600	196,800	208,000	200,000	193,500	152,500	177,100	225,100	222,200	188,489	185,311
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

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $17,760,500K ÷ $238,400K
= 74.50

The receivables turnover ratio for Group 1 Automotive, Inc. has displayed fluctuating trends over the past eight quarters. The ratio measures the efficiency with which the company is able to collect payments from its customers.

In Q4 2023, the receivables turnover ratio was 29.42, indicating that the company was collecting its outstanding receivables approximately 29 times during the year. This represents a decrease compared to the previous quarter Q3 2023, where the ratio was 33.38.

The trend for the receivables turnover ratio is generally decreasing from Q1 2022 to Q4 2023, with some minor fluctuations quarter over quarter. The highest turnover ratio of 37.91 was observed in Q3 2022, while the lowest ratio of 29.42 was reported in Q4 2023.

A decreasing trend in the receivables turnover ratio could indicate potential issues with the company's credit policies, collection efforts, or the quality of its accounts receivable. Further analysis and comparison with industry benchmarks would provide more insights into the effectiveness of Group 1 Automotive, Inc.'s receivables management.