Penske Automotive Group Inc (PAG)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 25,441,900 | 24,593,600 | 22,976,000 | 21,113,900 | 17,259,400 |
| Inventory | US$ in thousands | 4,640,200 | 4,293,100 | 3,509,100 | 3,129,000 | 3,425,600 |
| Inventory turnover | 5.48 | 5.73 | 6.55 | 6.75 | 5.04 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $25,441,900K ÷ $4,640,200K
= 5.48
The inventory turnover ratio for Penske Automotive Group Inc has been showing a generally positive trend over the past five years. The ratio increased from 5.04 in December 2020 to 6.75 in December 2021, indicating a more efficient management of inventory during that period. However, there was a slight decrease to 6.55 in December 2022, followed by a further decline to 5.73 in December 2023, suggesting a potential decrease in inventory turnover efficiency during those periods. The ratio then dropped again to 5.48 in December 2024, indicating a further decline in inventory turnover efficiency compared to the previous year.
Overall, while there have been fluctuations in the inventory turnover ratio, it remains above 5 for each year, indicating that Penske Automotive Group Inc has been able to sell and replenish its inventory approximately 5 to 7 times a year on average. It is important for the company to continually monitor and optimize its inventory management practices to ensure efficient use of its resources and maintain healthy operational performance.
Peer comparison
Dec 31, 2024