Penske Automotive Group Inc (PAG)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	29,451,800	29,195,100	28,674,800	28,137,700	27,795,800	27,098,900	26,694,800	26,777,500	25,577,100	25,052,000	24,527,000	21,190,400	20,425,800	20,532,600	20,522,100	22,620,300	23,169,200	22,727,100	22,418,100	22,602,600
Property, plant and equipment	US$ in thousands	2,765,200	2,661,000	2,624,500	2,566,800	2,496,500	2,415,500	2,402,300	2,415,300	2,442,200	2,378,600	2,410,000	2,372,700	2,404,400	2,337,900	2,293,700	2,297,900	2,366,400	2,309,300	2,308,900	2,276,100
Fixed asset turnover		10.65	10.97	10.93	10.96	11.13	11.22	11.11	11.09	10.47	10.53	10.18	8.93	8.50	8.78	8.95	9.84	9.79	9.84	9.71	9.93

December 31, 2023 calculation

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

Penske Automotive Group Inc's fixed asset turnover ratio has been relatively stable over the past eight quarters, ranging from 10.68 to 11.22. The fixed asset turnover ratio measures how efficiently the company is generating revenue from its fixed assets. A higher ratio indicates that the company is generating more revenue per dollar of fixed assets, which is generally seen as a positive sign of operational efficiency.

With an average fixed asset turnover of around 11 over the periods analyzed, Penske Automotive Group Inc appears to be effectively utilizing its fixed assets to generate sales. This consistency in the ratio suggests that the company has a good balance between its asset base and revenue generation. Investors and stakeholders may view this as a positive indicator of the company's operational effectiveness and financial health.