Penske Automotive Group Inc (PAG)

Days of sales outstanding (DSO)

		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
Receivables turnover		26.42	30.45	32.20	30.58	30.66	32.60	34.48	32.06	34.85	33.96	26.86	24.60	25.31	24.21	27.12	36.70	24.13	23.50	23.74	21.86
DSO	days	13.81	11.99	11.34	11.94	11.91	11.20	10.59	11.38	10.47	10.75	13.59	14.84	14.42	15.08	13.46	9.94	15.13	15.53	15.38	16.70

December 31, 2023 calculation

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

The Days Sales Outstanding (DSO) of Penske Automotive Group Inc has shown a slight increase in Q4 2023 compared to the previous quarter, reaching 13.78 days. This represents the average number of days it takes for the company to collect its accounts receivable. Despite this increase, the DSO remains relatively low and stable over the past few quarters, indicating efficient management of receivables.

It is worth noting that the DSO has been generally trending upwards over the last two years, which may suggest a lengthening of the collection period. This trend should be monitored closely to ensure that it does not lead to cash flow challenges or indicate potential credit risks with customers.

Overall, Penske Automotive Group Inc's DSO performance reflects a strong ability to collect payments promptly from customers, but there may be room for improvement in managing accounts receivable to maintain efficiency and liquidity in the future.