Penske Automotive Group Inc (PAG)

Days of inventory on hand (DOH)

		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
Inventory turnover		5.50	5.22	5.33	5.60	5.74	6.58	6.14	6.42	6.55	7.07	7.16	7.05	6.75	8.05	7.01	5.46	5.04	5.41	5.09	4.51
DOH	days	66.37	69.90	68.54	65.15	63.62	55.49	59.41	56.82	55.75	51.59	51.01	51.77	54.09	45.36	52.05	66.88	72.44	67.48	71.69	80.90

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.50
= 66.37

The days of inventory on hand (DOH) for Penske Automotive Group Inc have shown a decreasing trend from March 31, 2020, to December 31, 2024, indicating improvements in inventory management efficiency. The DOH decreased from 80.90 days on March 31, 2020, to 66.37 days on December 31, 2024, with fluctuations in between.

The company has effectively reduced the number of days it takes to sell its inventory over the years. A lower DOH value suggests that Penske Automotive Group Inc is able to sell its inventory more quickly, which can reduce carrying costs, minimize inventory obsolescence risk, and enhance cash flow.

It is important to note that while a decreasing DOH is generally favorable, an excessively low DOH could indicate inventory shortages or challenges in meeting customer demand. Therefore, the company should strike a balance between reducing DOH and ensuring the availability of inventory to meet customer needs efficiently.