Group 1 Automotive Inc (GPI)
Working capital turnover
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Revenue | US$ in thousands | 19,934,300 | 17,873,700 | 16,222,100 | 13,481,900 | 10,851,800 |
Total current assets | US$ in thousands | 3,497,300 | 2,791,300 | 1,985,300 | 1,666,200 | 2,004,200 |
Total current liabilities | US$ in thousands | 3,396,800 | 2,505,700 | 1,921,400 | 1,543,600 | 1,842,700 |
Working capital turnover | 198.35 | 62.58 | 253.87 | 109.97 | 67.19 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $19,934,300K ÷ ($3,497,300K – $3,396,800K)
= 198.35
The working capital turnover ratio for Group 1 Automotive Inc has shown significant fluctuations over the past five years. In December 2020, the ratio stood at 67.19, indicating that the company turned over its working capital 67.19 times during the year.
By December 2021, the ratio had increased to 109.97, suggesting a more efficient utilization of working capital. This improvement continued into December 2022, with a substantial jump to 253.87, indicating a significant increase in the company's efficiency in converting working capital into revenue.
However, there was a sharp decline in the ratio by December 2023 to 62.58, which could signify a slowdown in the company's working capital turnover efficiency. This trend reversed in December 2024, with the ratio surging to 198.35, indicating a notable improvement in turning working capital into revenue.
Overall, the working capital turnover ratio for Group 1 Automotive Inc has displayed fluctuations, with periods of both efficiency and potential inefficiency in utilizing its working capital to generate revenue over the five-year period.
Peer comparison
Dec 31, 2024