Penske Automotive Group Inc (PAG)

Fixed asset turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Revenue (ttm) US$ in thousands 30,455,200 30,007,400 29,864,400 29,636,200 29,527,400 29,267,100 28,740,000 28,178,400 27,814,800 27,099,100 26,675,700 26,756,300 25,554,700 25,070,700 24,545,000 21,208,600 20,443,900 20,513,200 20,509,200 22,613,900
Property, plant and equipment US$ in thousands — — — — — 5,033,200 5,013,600 2,566,800 2,496,500 2,415,500 4,837,700 2,415,300 4,893,600 4,789,500 4,854,900 2,372,700 2,404,400 2,337,900 2,293,700 2,297,900
Fixed asset turnover — — — — — 5.81 5.73 10.98 11.14 11.22 5.51 11.08 5.22 5.23 5.06 8.94 8.50 8.77 8.94 9.84

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $30,455,200K ÷ $—K
= —

The fixed asset turnover ratio for Penske Automotive Group Inc has exhibited fluctuations over the years based on the provided data. The ratio measures how efficiently the company generates revenue from its fixed assets.

From March 31, 2020, to December 31, 2021, the fixed asset turnover ratio showed a decreasing trend, declining from 9.84 to 5.22. This could indicate that the company's fixed assets were not effectively utilized to generate sales during this period.

However, there was a significant improvement in the ratio from March 31, 2022, to September 30, 2022, where it increased from 5.51 to 11.22. This surge suggests a more efficient utilization of fixed assets, resulting in higher revenue generation relative to the value of fixed assets.

Subsequently, the ratio decreased again, dipping to 5.81 by September 30, 2023. This decrease may imply a drop in sales relative to the value of fixed assets during that period.

The lack of data from December 31, 2023, to December 31, 2024, makes it challenging to provide a more detailed analysis for the latter part of the period. However, it is important for Penske Automotive Group Inc to monitor and manage its fixed asset turnover ratio consistently to ensure optimal utilization of assets and efficient revenue generation.