Group 1 Automotive Inc (GPI)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 57.37 | 63.26 | 55.85 | 50.37 | 48.17 | 43.49 | 44.97 | 41.52 | 37.35 | 34.01 | 33.75 | 33.82 | 34.87 | 28.43 | 35.49 | 51.67 | 58.99 | 54.45 | 51.83 | 71.83 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 57.37 | 63.26 | 55.85 | 50.37 | 48.17 | 43.49 | 44.97 | 41.52 | 37.35 | 34.01 | 33.75 | 33.82 | 34.87 | 28.43 | 35.49 | 51.67 | 58.99 | 54.45 | 51.83 | 71.83 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 57.37 + — – —
= 57.37
Group 1 Automotive Inc has shown fluctuations in its cash conversion cycle over the periods provided. The cash conversion cycle represents the number of days it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to June 30, 2022, the cash conversion cycle saw a general decreasing trend, indicating improved efficiency in managing inventory, accounts receivable, and accounts payable. This trend suggests that the company was able to shorten the time it takes to convert resources into cash during this period.
However, from September 30, 2022, to December 31, 2024, there was a slight increase in the cash conversion cycle, signaling potential challenges in managing working capital efficiently. The uptick in the cash conversion cycle could imply that the company may be taking longer to convert investments into cash or facing delays in collecting payments from customers.
Overall, Group 1 Automotive Inc should continue to monitor its cash conversion cycle closely to ensure optimal working capital management and maintain healthy cash flow operations.
Peer comparison
Dec 31, 2024