Group 1 Automotive Inc (GPI)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 17,760,600 | 16,137,600 | 13,416,000 | 10,768,700 | 11,964,300 |
| Total assets | US$ in thousands | 7,774,100 | 6,717,500 | 5,749,400 | 5,089,400 | 5,570,200 |
| Total asset turnover | 2.28 | 2.40 | 2.33 | 2.12 | 2.15 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $17,760,600K ÷ $7,774,100K
= 2.28
Group 1 Automotive, Inc.'s total asset turnover has shown fluctuations over the past five years. The trend indicates the company's ability to generate revenue in relation to its total assets. A total asset turnover ratio of 2.30 in 2023 signifies that the company generated $2.30 in revenue for every $1 of total assets.
Comparing this ratio to previous years, we see a slight decline from the 2.41 in 2022 and 2.34 in 2021. This may indicate a less efficient use of assets in generating revenue in 2023. However, the ratio still remains above 2, which generally indicates that the company is utilizing its assets effectively to generate sales.
The significant increase in total asset turnover from 2.13 in 2020 to 2.16 in 2019 indicates that Group 1 Automotive, Inc. improved its efficiency in generating revenue from its assets during that period.
Overall, the trend in total asset turnover for Group 1 Automotive, Inc. suggests that the company has historically been successful in efficiently generating revenue from its total assets, but there may be a need for closer monitoring to ensure continued efficiency in asset utilization for revenue generation.
Peer comparison
Dec 31, 2023