Penske Automotive Group Inc (PAG)

Days of inventory on hand (DOH)

		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
Inventory turnover		6.53	7.49	7.00	7.32	7.47	8.09	8.19	8.04	7.69	9.12	7.93	6.19	5.73	5.95	5.41	4.66	4.63	4.78	4.79	4.68
DOH	days	55.89	48.74	52.17	49.83	48.89	45.11	44.56	45.38	47.44	40.00	46.05	59.01	63.72	61.34	67.45	78.28	78.89	76.36	76.27	78.02

December 31, 2023 calculation

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

Penske Automotive Group Inc's days of inventory on hand (DOH) have shown some fluctuations in recent quarters. In Q4 2023, the company had 63.72 days of inventory on hand, which was higher compared to the previous quarter's 55.49 days. This increase indicates that the company may be carrying more inventory relative to its sales volume, which could tie up more of its working capital.

Looking at the trend over the past year, we see a general pattern of DOH increasing in the second half of the year before decreasing in the first half of the following year. This suggests a seasonal aspect to the company's inventory management practices.

Overall, it is important for Penske Automotive Group Inc to closely monitor its inventory levels to ensure efficient inventory turnover and manage working capital effectively. Analyzing the reasons behind the fluctuations in DOH and implementing strategies to optimize inventory levels can help the company improve its financial performance and profitability.