Group 1 Automotive Inc (GPI)

Working capital 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
Total current assets	US$ in thousands	2,791,300	2,375,100	2,348,900	2,097,700	1,985,300	1,695,100	1,676,300	1,647,500	1,666,200	1,570,800	1,689,800	1,911,200	2,004,200	1,916,600	1,834,600	2,399,300	2,516,300	2,386,500	2,362,130	2,433,070
Total current liabilities	US$ in thousands	2,505,700	2,174,600	2,122,300	2,054,400	1,921,400	1,647,100	1,682,400	1,618,900	1,543,600	1,046,100	1,272,000	1,712,500	1,842,700	1,812,100	1,775,100	2,640,400	2,422,300	2,397,300	2,335,340	2,436,740
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	—

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $17,760,500K ÷ ($2,791,300K – $2,505,700K)
= 62.19

The working capital turnover ratio for Group 1 Automotive, Inc. fluctuated over the last eight quarters. In Q1 2022, the ratio was at its highest at 500.57, indicating that the company effectively managed its working capital to generate sales during that period. However, in the following quarters, the ratio decreased significantly, reaching its lowest point of 62.56 in Q4 2023. This sharp decline suggests that the company may have faced challenges in efficiently utilizing its working capital to support sales in the most recent quarter.

Overall, Group 1 Automotive, Inc. has exhibited varying levels of efficiency in converting its working capital into sales over the examined period, with noticeable fluctuations in performance. Further analysis and contextual information would be necessary to fully understand the reasons behind these changes and to assess the company's working capital management effectiveness.