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.