Penske Automotive Group Inc (PAG)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		26.42	30.62	34.85	25.31	24.13
DSO	days	13.81	11.92	10.47	14.42	15.13

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 26.42
= 13.81

The days of sales outstanding (DSO) for Penske Automotive Group Inc have shown a fluctuating trend over the past five years. In 2023, the DSO increased to 13.78 days from 11.90 days in 2022, indicating that on average, it took the company longer to collect its accounts receivable in 2023. This increase reversed the declining trend seen in the previous two years, where the DSO had decreased from 14.41 days in 2020 to 10.48 days in 2021.

While a higher DSO could suggest inefficiencies in accounts receivable management or potential issues with collecting payments from customers, it is important to consider the industry norms and any specific business factors that may have influenced the increase. Overall, monitoring the DSO can provide insights into a company's collections efficiency and its ability to convert sales into cash effectively.