Penske Automotive Group Inc (PAG)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		5.48	5.73	6.55	6.75	5.04
DOH	days	66.57	63.72	55.75	54.09	72.44

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.48
= 66.57

To analyze the trend in Penske Automotive Group Inc's Days of Inventory on Hand (DOH) over the five-year period from December 31, 2020, to December 31, 2024, we observe the following:

1. In 2020, the DOH was reported at 72.44 days, indicating that on average, Penske Automotive Group held its inventory for approximately 72 days before selling it.

2. By the end of 2021, the DOH decreased to 54.09 days, suggesting that the company managed its inventory more efficiently, reducing the number of days it held inventory before generating sales.

3. In 2022, the DOH increased slightly to 55.75 days, possibly due to changes in inventory management practices, market conditions, or product mix.

4. By the end of 2023, the DOH rose further to 63.72 days, indicating an increase in the average number of days inventory was held by the company compared to the previous year.

5. Finally, as of December 31, 2024, the DOH stood at 66.57 days, showing a continued upward trend in the number of days Penske Automotive Group held inventory, potentially signaling a need to assess and optimize inventory management strategies.

Overall, the company experienced fluctuations in its DOH over the five-year period, reflecting changes in inventory turnover efficiency and potentially highlighting areas for improvement in managing inventory levels to enhance operational and financial performance.