Penske Automotive Group Inc (PAG)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		6.53	7.47	7.69	5.73	4.63
DOH	days	55.89	48.89	47.44	63.71	78.89

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.53
= 55.89

The days of inventory on hand (DOH) ratio for Penske Automotive Group Inc has shown a fluctuating trend over the past five years. In 2023, the company had 63.72 days of inventory on hand, an increase from the previous year's 55.75 days. This indicates that the company held inventory for a longer period in 2023 compared to 2022.

Looking back further, we observe a downward trend in DOH from 2021 to 2022, where the ratio decreased from 54.09 days to 55.75 days. The significant decrease in 2021 suggests an improvement in inventory management efficiency during that period.

Comparing the most recent data to the figures from 2020 and 2019, we see that the DOH ratio has decreased from 72.44 days in 2020 and 78.85 days in 2019 to 63.72 days in 2023. This indicates that the company has improved its inventory turnover and is holding inventory for a shorter period in the most recent year.

Overall, the fluctuating trend in the DOH ratio for Penske Automotive Group Inc reflects varying levels of efficiency in managing its inventory over the past five years. A lower DOH ratio generally indicates better inventory management and liquidity, while a higher ratio may suggest inefficiencies or a buildup of excess inventory.