Penske Automotive Group Inc (PAG)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	29,451,800	27,762,300	25,577,100	20,425,800	23,169,200
Property, plant and equipment	US$ in thousands	2,765,200	2,496,500	2,442,200	2,404,400	2,366,400
Fixed asset turnover		10.65	11.12	10.47	8.50	9.79

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $29,451,800K ÷ $2,765,200K
= 10.65

Penske Automotive Group Inc's fixed asset turnover has demonstrated a fluctuating trend over the past five years. The ratio reached its peak in 2022 at 11.14 and slightly decreased to 10.68 in 2023. This indicates that the company generated $10.68 in revenue for every dollar invested in fixed assets in 2023.

The consistent high values of fixed asset turnover above 8.50 since 2019 suggest that Penske Automotive efficiently utilizes its fixed assets to generate sales. A higher fixed asset turnover ratio is generally desirable as it signifies better asset utilization and operational efficiency.

Overall, the trend in Penske Automotive's fixed asset turnover indicates effective management of fixed assets to drive revenue generation, although the slight decline in 2023 warrants continued monitoring to ensure the company maintains its efficiency in asset utilization.